Self-Employed? Here’s Why You Should Invest in Critical Illness Insurance

Being your own boss is undoubtedly the best thing. You do not have to abide by fixed working hours or report to your superiors. Moreover, you have the freedom of focusing your work in a particular domain. But being self-employed is challenging. You end up working round the clock to provide maximum value to your clients, but it can hamper your health in the long run.

So how to ensure your, as well as your family’s future is protected in case there is an unexpected severe medical emergency? Buy health insurance!

Health insurance is undoubtedly the best way to mitigate any financial burden that might arise in case of a medical emergency. It is a safety net for the unexpected times when a health contingency strikes, disturbing not only your mental peace, but also financial stability.

Moreover, self-employed individuals do not have group insurance covers which are provided by most employers. Thus, it is essential for self-employed individuals to have a health insurance policy. You can increase the coverage of your health insurance policy using a critical illness top-up to your base policy or purchase a standalone critical illness cover.

A critical illness insurance policy pays a fixed amount irrespective of your actual medical expenses. A set of predetermined illnesses are defined under your policy. All you need to provide is proof of diagnosis of that particular ailment to the insurance company.

Which are common ailments covered under a critical illness insurance plan?

Here are some of the most common treatments and procedures covered by a critical illness policy

  • Cancers of different parts of the body.
  • Heart attack, heart valve replacement, coronary artery bypass surgery.
  • Kidney failure.
  • Coma, Deafness, Loss of limbs and speech.
  • Paralysis and Parkinson’s disease.
  • Any other major organ transplant.

Why should you, as a self-employed individual purchase a critical illness plan?

The sum assured guaranteed under a critical illness plan can be used for –

  • Availing treatment for the specified illness.
  • Paying for medicines and other treatment costs.
  • Replacing your source of income lost due to the illness or disease.
  • Supporting your family’s lifestyle when you are receiving treatment.
  • It can also be used to repay any debt or dues payable to others.

The highlight feature of a critical illness plan is the entire sum assured is paid on the diagnosis of the disease, and it is not linked to the actual medical expenses incurred by you.

How to select a suitable critical illness policy?

First and foremost is you assess your health condition and then evaluate how much amount shall be sufficient.

Sum insured: After you analyze your health condition, you must select an adequate amount of coverage that shall be required to treat the illness.

Coverage included: The assessment of a policy must include which illness is covered under your policy. Some plans may insure specific illness while others may not. It is for you to decide which plan suits you the best.

Renewal benefits: These critical illness policies need to be renewed periodically. Thus, before buying any critical illness plan, enquire about its renewal benefits. Also, some insurance plans come with a capping on the number of times it can be renewed. Therefore, make sure you select a policy with a lifetime renewability so that it offers maximum coverage for more extended periods.

While you look for the various plans, a health insurance calculator can come handy to compare them. Not only you can compare the premiums, but also other policy benefits like coverage of the policy, renewal duration and more.

An illness of severe intensity can lead to liquidating your hard-earned savings, but instead, critical illness insurance can be useful to prevent that. Using a critical cover, you can financially secure your family as well as your business. Stay healthy and stay insured!

What do you think?

Written by Danny Dotson

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