Risk Mitigation for Major Ailments: Comparative Models of Critical Illness Insurance Coverage in South Korea and India
Critical Illness (CI) insurance is a financial safety net designed to provide a lump sum benefit upon the diagnosis of specific, life-threatening conditions, supplementing standard medical coverage.
Coverage Model (Commonality): In both South Korea and India, the core benefit is a tax-free, single lump-sum payout upon the first diagnosis of a covered illness, provided the insured survives a brief period (survival period). This money can be used for treatment, income replacement, or lifestyle modifications.
Common Covered Conditions: Standard policies typically cover a range of high-cost diseases, including cancer, heart attack, stroke, and kidney failure requiring dialysis. The number of covered ailments (ranging from a few to over 100) varies by plan.
India Specifics: CI policies are crucial for covering the high, out-of-pocket costs of treating serious non-communicable diseases (NCDs), offering a much-needed financial shield where traditional indemnity health plans may reach their limits.
South Korea Specifics: While not detailed in the available summary, CI coverage in South Korea often interacts closely with the national social security and healthcare programs, ensuring comprehensive financial protection against the immense costs of severe, long-term conditions.