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Critical Illness Cover and Its Usefulness

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Overwhelmed, Gupta breathed a sigh of relief when he discovered that even after missing three EMIs for his home loan, his dream house continued to be his. Despite the most sophisticated heart surgery and medical attention, his savings were untouched. This 37-year-old manager, with no previous medical history of any illness, had never imagined in his worst nightmares that the ever-growing work related stress would land him in the ICU of a hospital.


Gupta found himself surrounded by life-supporting equipments and a battery of doctors struggling to keep his heart beating. Gupta, the most unlikely to suffer a severe cardiac arrest, had lived a disciplined life with cautious food habits and regular exercise. However, more often than not, he brought his work stress home and with every promotion came along increased levels of stress and anxiety. He woke up to realise he had been unconscious for several weeks after the heart attack. Amidst the chaos, it had not occurred to anyone that the immediate financial burden arising from the cost of two long months of hospitalisation including ICU charges, cost of medicines, regular check-ups, was paid for by his home insurance policy. None of the EMIs for his home loan had bounced, as the loan was insured. Fortunately, three years ago, Gupta had opted for the critical illness cover in his bancassurance home loan insurance policy, which not only kept three EMIs for his home loan from bouncing but also covered his medical bills, keeping him from digging into his savings during contingency. The procedure to obtain such a cover was also simple, as all it required was just a simple declaration of his health. There was no medical check-up either. The thought of not losing his life-long investment facilitated his speedy recovery.

A recent ICICI Lombard analysis hints at a worrying pattern in the occurrence of various lifestyle diseases in men and women alike. ICICI Lombard's Health Research Cell analysed the claims distribution data of the past two years from the company's group health portfolio. The results clearly indicate that critical diseases such as cardiac ailments, cancer, kidney or renal failure and stroke are affecting people at an early age. It shows that there is an immediate need to address these health risks that affect a large number of individuals and increasingly so at a younger age. The cost of treatment or procedures related to critical illnesses is usually high, which may not be covered by an individual's savings alone. Thus, it becomes imperative to obviate the risk of these lifestyle ailments through health insurance that provides comprehensive protection against critical or life endangering diseases such as cancer, coronary artery bypass graft surgery, heart attack, end stage renal failure, major organ transplant, stroke, paralysis, heart valve replacement surgery, multiple sclerosis cancer, heart attack, stroke and kidney failure etc. A critical illness cover is a definitive means of countering such risks. It allows you to focus on health as it takes away the stress about money. Careful assessment of both existent and imminent health risks based on factors such as age, gender, heredity and lifestyle is essential to determine one's insurance needs and choosing the right cover. Some general insurance companies have addressed the rising need of health insurance in the market by designing comprehensive home loan insurance policies, which pay off the loan, insure the home and simultaneously provide cover against critical illnesses. These policies encompass covering losses to structure and contents of home, covering living expenses while one is off work due to the ailment. These policies also ensure that the loan EMIs are not dishonoured in case of loss of employment in the event of such illnesses. Even in case of unfortunate death or permanent disability caused by an accident, the total sum assured is paid off to the insured. So you should opt for a policy that covers multiple individuals under the same loan in case of joint loans. Prior to taking a policy, it is important for the customer to keep a track of the different exclusions in the insurance contract which may prevent payout in certain circumstances. The policy's premium usually depends on the age of the applicant, loan amount, loan tenure, sum insured and applicant's occupation.

The risk in all financial liabilities can be nullified with adequate insurance cover. A critical illness cover takes care of immediate and future financial requirements arising from a severe ailment so that the savings are intact and used in the way initially planned. You may not be able to prepare for a critical illness completely but some of the burden can be lifted with a critical illness insurance plan.

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