Insurance of health is a blessing for those who are financially not strong and do not have the ability to pay the hefty illness bills. So is an insurance product in which if policyholder is diagnosed to have one of the critical illness that is named in the insurance policy than the insurer is forced to pay the money to policyholder. A contract is usually signed between the insurer and individuals on the terms provided by the insurance company. The conditions and regulations regarding the diagnosis of the critical illness vary from company to company. It all depends upon the company to standardize the types and conditions of the illness to be called as critical illness. Policy clearly mentioned the rules by which critical illness is considered valid. Policy also contains the provisions to provide the regular income and payout to the policyholder who undergoes surgery. Policy envisaged by the insurer explained that the policyholder should survive a minimum set of days which is termed as survival period. The survival period can varies from company to company but 28 to 30 days are usually the most common survival period.
Critical illness life insurance cover is actually to provide financial assistance to needy individuals. The amount received by the policy holder could be used to pay for recuperation aids, pay for the treatment and care, give financial support to the house budget which was disturb by the critical illness and pay debts off. Insurer takes complete and thorough investigation of the individual before signing a contract with the individual. There are some factors which must be considered such as age, gender, family history, smoking status, alcohol consumption, past medical history and body mass index by the insurer to be on the safer side.
There are number of diseases that are not covered in the insurance policy such diabetes but it is evident that diseases which are not insured may get the cover in future because of the saturation of the market with number of new insurers and condition of the market which then need cover. There is some alternative to the payment of cash to the policyholder by the insurer and that is the insurer pay direct payment to the health provider to cover up the cost of the illness. Some insurers also allow the policyholders to get the health services from the other parts of the world if the services are not available in the country. Critical illness insurance policy is in vogue and it is penetrating the societies very rapidly. The recent trend of doing contract with such companies is the high medical charges. People with some sense are coming in touch with the critical illness insurance companies in order to evade from the hefty critical medical charges.
There are some social impacts of the critical illness insurance policy upon the society and at individual level. At individual level individual feels health and financial security. So satisfaction can result which can increase the output of the individual. At societal level it provides health insurance market which provides employment to the number of individuals. So, critical illness life insurance paves the way to ease tension of health issues in general public.
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