Critical illness causing financial ruin? Insure yourself properly

Rajiv is an efficient sales manager but he took to smoking to overcome stress, soon became an addict and eventually collapsed on duty one day. The normal group insurance offered by his company does not fully cover costs towards his paralytic stroke and resultant job loss. In such a calamitous situation, critical illness insurance policies will come to rescue.

Hyderabad: Rajiv is a sales manager in a company and earned a good name for running his team efficiently. In the process, he took to smoking to overcome stress and soon became addicted to it. One day, while on duty, Rajiv collapsed suddenly. Colleagues admitted him to hospital, no life threat was there but he ended up suffering from paralysis on the left side of the body.

Like other employees, Rajiv has got group health insurance offered by his company, which covers only his treatment costs. Because of his critical illness now, he needs constant medical attention and, on the other hand, he cannot work anymore. All these factors have hurled his family into tumultuous financial difficulties beyond their ability to surpass.

Of late, many people are falling critically ill due to untimely cardiac arrest, cancer, paralysis, liver, kidney and so on. The list of lifestyle diseases is on the rise because of fast foods and changing habits. These critical diseases incur enormous costs. Normal health covers pay for only treatment. None can bear huge financial costs once afflicted with chronic diseases unless they are covered by 'critical illness policies'.

Companies will pay compensation at one go once a critical illness policy holder is diagnosed with a chronic disease. Minimum amount under critical care health policies is about Rs. 5 lakh. These policies will enable a patient to withstand post-hospitalisation expenses. Companies are offering four types of critical illness policies in the market to cover cancer, cardiac surgeries (open heart, bypass), brain, neuro disabilities, paralysis, blindness, deafness, liver, lungs and kidneys. Policy holders can claim 100 percent under these policies.

Normal health policies pay just treatment bills but critical care covers 100 percent medical expenses in each of the four categories of chronic diseases. Thus, a policy holder can get nearly 400 percent joint coverage under the four critical care categories relating to heart, cancer, neuro and liver. Also, critical diseases trigger other illnesses overtime. Compensation coming under critical care policies will serve as financial assistance under such eventualities.

There is lesser waiting period for critical care policies. Many companies cover critical diseases in all four categories 90 days after taking the policy. However, compensation will not be paid in cases of drugs and alcoholism. Some companies will consider working conditions of an employee before issuing a policy. One should analyse all these factors before planning to take such policies.

Critical care policy is a must for those have a history of chronic diseases in their family. It is a necessity also for those who work in stressful environment and those having vulnerable lifestyle habits. Sometimes, a disease may relapse after treatment and claim settlement. Or, supplementary diseases may crop up. Chronic diseases incur continuing medical costs. Critical care covers will help meet expenses in all such unavoidable instances.