Importance of critical illness insurance for senior citizens

Posted on: Feb 16, 2024 | 3 mins | Written by: HDFC ERGO Team

Importance of critical illness insurance for senior citizens

The ever-increasing medical expenses can create a huge financial burden if you are not prepared for it with the right health insurance policy. This is especially true for senior citizens with limited income and savings. A medical emergency or a long-term treatment can easily drain away a chunk of your savings and make things difficult for you and your loved ones. Moreover, if you get diagnosed with a critical illness like cancer, you might end up spending a major part of your savings on your medical bills. This is when having a critical illness insurance policy can help.

So, what is a critical insurance cover, and how can it help senior citizens, especially those diagnosed with cancer? Let’s find out in this article.

Importance of critical illness insurance for senior citizens

A critical illness insurance policy covers life-threatening conditions that require long-term and expensive medical treatment. If you get diagnosed with a critical illness covered under the policy, you will receive a lump sum from the insurance provider. You can use this money to cover your medical expenses and other day-to-day expenditures.

A critical illness cover is available as an add-on or rider with health insurance . As senior citizens are at a greater risk of suffering from critical illnesses, it is important for them to choose this insurance cover. Moreover, many senior citizens have limited income and savings, and getting diagnosed with a life-threatening condition like cancer can create a significant financial burden.

Prevalence of cancer among senior citizens

Cancer is one of the most common critical illnesses among people of all ages. However, studies have shown that senior citizens or the elderly population of the country are at a higher risk of being diagnosed with this condition.

According to the findings from the National Cancer Registry program, women aged between 65-69 years and men over 75 years of age are at the highest risk of cancer. The study also states that the incidence of cancer among senior citizens or older adults is likely to increase by 13.5% by 2025 as compared to the cases recorded in 2020.

Considering this, it is wise to buy critical illness cover and stay prepared for uncertain times. A critical illness policy's annual premium will be quite affordable compared to the exorbitant costs associated with cancer treatment.

Cost of cancer treatment

The cost of cancer treatment in India depends on various factors, such as:

• Body part affected by cancer

• Type of cancer treatment

• Age and medical condition of the person diagnosed with cancer

• Hospital type and oncologist fee

• Cancer treatment cost in your city of residence

• Cost of lab/investigation tests

On an average, cancer treatment in India starts from INR 90,000. The maximum cost can go up to INR 27,50,000, a cancer patient may have to spend INR 5,00,000 on his/her treatment.

Let’s take a look at the cost of cancer treatment in some major cities in India —

• New Delhi: INR 1,05,000 to INR 26,25,000

• Mumbai: INR 1,10,000 to INR 27,50,000

• Chennai: INR 90,000 to INR 23,75,000

• Bangalore: INR 1,00,000 to INR 25,00,000

• Hyderabad: INR 1,00,000 to INR 25,00,000

• Gurgaon: INR 1,00,000 to INR 25,00,000

• Pune: INR 1,00,000 to INR 25,00,000

The following are the costs of different cancer tests and procedures —

• Diagnostic tests or pre-procedure tests, such as blood tests, X-rays, CT scans and biopsy: INR 15,000 to INR 40,000

• Cancer surgery, chemotherapy, radiotherapy and other treatments: INR 1,50,000 to INR 18,00,000

• Daycare treatments: INR 10,000 to INR 25,000 for a period of 2-6 days

• Medicines, post-hospitalisation bills, and other expenses: INR 10,000 to INR 50,000

Mental and financial strain due to cancer treatment

Cancer is a life-threatening condition, and getting diagnosed with it can cause significant mental and financial strain. Since the condition requires long-term treatment, it can drain your savings in no time. Things get worse if the sole breadwinner of the family gets diagnosed with cancer.

Getting diagnosed with cancer can cause the following mental and financial strain:

• Loss of job and income

• Absence from work for an extended period

• Loss of productivity, therefore, reduced income

• Feeling anxious and depressed

• Worrying about paying the medical bills

• Shrinking savings and increasing debts

Conclusion

To sum up, cancer treatment is expensive and can create significant financial woes if you are not prepared for it. So, if you are a senior citizen, it is wise to secure your health and finances with senior citizen health insurance and critical illness coverage. This is particularly important if there’s a family history of cancer or any other critical illness. The policy can offer the much-required financial support and help you keep your retirement funds intact.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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