Traditional critical medical insurance or the dreaded medical insurance is an insurance product in which the insurance company pays the insured a lump sum in cash if they are diagnosed with a critical illness or undergo one of the surgeries covered by the medical insurance. Politics.
Typical critical illness insurance can include cancer, organ transplants, cardiac arrest, multiple sclerosis, third-degree burns, aortic transplants, valve replacement or repair, coma, quadriplegia, total blindness, end-stage kidney disease, etc. Pre-existing conditions are not covered by health insurance.
The policy may require the insured to survive a minimum number of days (the survival time) from the first diagnosis of the disease. The survival time used varies from company to company (usually around 30 days after diagnosis).
Both life and general insurance companies offer coverage for critical illnesses. In India, the premium paid for this is entitled to tax benefits under Article 80D.
Critical Illness Insurance is nothing short of a modern superhero. This is why …
God forbid, if you were diagnosed with cancer at an early stage, it would have three main effects:
First, your treatment costs are likely to be capped and your health care policies (assuming you have one) may not be enough to cover them. Also, many health policies do not provide specific coverage for critical illnesses. In some cases, a single set of treatment modalities can negate lifetime savings.
Second, the time it takes to recover can be much longer than your allotted paid time off, meaning a loss of regular income. At a time when his outlets continue to increase, his income practically stops. This can make it difficult to pay for monthly expenses like the home loan or your child’s education costs or, in the worst case, even everyday equipment. Worse yet, if you’ve been laid off due to illness, your earnings are unlikely to start anytime soon.
A self-employed person can lose their business entirely at this stage unless they are insured with critical health insurance.
Third, even after treatment and healing (which is highly likely today, thanks to advances in modern medicine), you may not be able to put the same hours of work or energy into work, which affects both your job and your future income.
So first you survive the grueling treatment, then the long recovery period, and when you finally try to get back into your life, the remaining financial mess you wish you hadn’t survived at all.
Your critical illness cover plays a superhero here.
You see, being diagnosed with a serious illness is a life-changing event. It goes hand in hand with an emotional disorder that shakes the life not only of the victim but also of his entire family.