OVER eight lakh Indians are affected by cancer every year, nearly five crore suffer from coronary heart disease and almost one lakh patients are diagnosed with kidney failure each year.

Industry know how indicates that the total health expenditure in India is worth Rs 3,00,000 crore. Hospitalisation spends accounts for Rs 1,00,000 crore. As opposed to that, the current level of health insurance premium is worth only Rs 6,000 crore. This means majority of India does not have an insurance cover and this is the bitter truth.

Making matters worse is medical inflation estimated 15 per cent per annum.
This coupled with a lack luster budget on health reforms, good treatment and hos pital services cost are likely to make serious dent in the middle class pocket.

The financial impact of this phenomenon are in three areas ­ first, potential loss of savings ­ where your hard earned money could be wiped out, especially as one comes down the income strata, second, potential loss of income ­ especially in cases where the breadwinner of the family is self employed and is unable to go to work due to the illness and third, potential ad-hoc expenses One aspect is rising costs. But what necessitates a catalyst approach to an investment in health insurance is our lifestyle outcome. With 30s being the new 40s and 40s being the new 50s, it's imperative to invest in a differentiated cover that provides optimal protection.

Further, many sections of the society have existing investment in assets that require midand long-term financial commitment in the form of EMIs for example.

Against the backdrop of financial dependency, if the breadwinner of a family is diagnosed with a critical disease that threatens financial security, the cost is not only extended towards treatment but the family needs to account for income loss or wealth depletion.

Thus a good critical illness policy will help one to prepare better as it typically offers up front payment upon diagnosis of the illness irrespective of treatment or hospitalisation costs, thus protecting your wealth, protecting your income and protecting your livelihood. One should ideally have the flexibility to purchase a critical illness cover as a `stand alone' or supplement to an existing health insurance cover. Infact if a family has a medical history that poses higher probability of threat for an individual and their children, the latter option is advisable as it can potentially double benefits subject to which policy one is going in for.

Here are a few tips while investing in a critical illness cover: When purchasing a critical illness cover compare policies offered by different companies. Opt for the one with an affordable premium providing the highest or superior coverage.

Make sure it covers all the major organs of the body including brain, heart, lungs, kidney, intestine, pancrease, nervous system and skin Opt for newer critical illness policies because in all likelihood it covers diseases for the first time in India.

Example coronary artery disease , a plastic anaemia, end-stage lung disease, end-stage liver failure , fulminant hepatitis, motor neurone disease, terminal illness and bacterial meningitis Ensure all heart diseases are covered such as first heart attack, coronary artery disease, coronary artery bypass surgery, heart valve surgery, surgery to aorta Cheapest may not be the best option because in all likelihood it doesn't cover what you need. The impact of which can only be felt in the event of an illness Also do consider the number of value adds the critical illness policy offers which may include hospital cash allowance, home nursing, ambulance charges, in-patient physiotherapy charges, recovery grant, accompanying person's expenses, parent accommodation as companion for child, out-patient dental emergency treatment (accident), out-patient emergency treatment for accidents, children education fund, mortal remains In conclusion, there are many critical illness product are available in the market but it's advisable to go for the policy which suits ones needs. Hence it wouldn't be extravagant to say that ignoring the critical illness may cost you quite critically.