Home Illness Protection 3 ways to prepare for unexpected critical illness
3 ways to prepare for unexpected critical illness

3 ways to prepare for unexpected critical illness


Unexpected events and unplanned expenses are an unfortunate reality of life. Building a strong contingency plan is essential to managing emergency situations.

Let’s take the example of Murugesh V. (name changed to protect identity), a 32-year-old IT professional from Bangalore who was recently diagnosed with acute kidney failure that required dialysis, followed by a transplant. He is the sole breadwinner in a family of three, which includes his wife and 2-year-old daughter. He also has a Rs. 45 lakh home loan for which, he pays an EMI of Rs. 42,000 per month.

In the period leading to his transplant, Murugesh needed six months off work and was only able to work part-time after that. While his corporate health insurance covered his hospitalization expenses, the loss of income was a big blow to his family. Murugesh and his wife had to liquidate their investments and savings to pay for monthly expenses and other large expenses like their home loan EMI and daughter’s annual school fees.

Murugesh’s situation is not unique and can happen to anyone. To avoid financial stress, it’s crucial to build an emergency fund and make critical illness insurance a key part of this reserve.

Emergency funds help you manage unforeseen events like temporary unemployment and short-term medical emergencies. Critical illness insurance ensures that any large medical emergency does not impact your life goals and standard of living as you recover and get back on your feet.

Here are 3 ways how you can go about building a corpus for chronic illnesses:

  1. Buy a critical illness insurance plan so that any long or short-term illness does not leave a big hole in your pocket and on your savings.
  2. Save a small amount every month over and above your savings goal and park it for any medical emergencies.
  3. Allocate your assets keeping contingencies in mind and do not have a large exposure to risky assets.

Protect yourself against Critical Illness



  1. Important to keep these in mind as lifestyles in India are changing and making us more prone to critical illnesses.

  2. Pls don’t take home loan, (dont pay 1/2 salary as interest with hard earned money) stay in rental flat, save money from salary then buy flat. Try this you and your entire family can have piece of mind with health as well as wealth.

    1. Forget it . A rental premise will bring in more tensions and insecurity though initially one can feel comfortable and secure . Having your own house is a big relief after retirement . That should be the first priority . It is also an asset which can bring in more income . In a rental house one lives on the whims of the landlord who can harass at any time .

  3. Critical illness cover is a good option.But the fact is it covers only cancer of specified severity in most of the insurance plans.Plz take due caution and get expert opinion before investing in critical illness plan.Else it would be a worthless bauble
    Dr Vinay


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