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What is Critical Illness Insurance ? Should I Buy It ?

Critical Illness Insurance and Reasons to Buy It

Health related emergencies come up without any notice. Medical insurance may cover your hospitalization expenses but it does not cover some of the critical diseases. In case of critical illnesses, a person faces several challenges. Then it is important for everyone to know about the uses and benefits of a critical illness insurance plan. It prevents you from an unprecedented financial turmoil by offering an additional safety net. 

What is Critical Illness Insurance ?

Health insurance provides financial assistance and protects you against a wide variety of healthcare expenses. With a critical illness insurance policy you can get advanced coverage against a number of life-threatening diseases. The compensation is provided in a lump sum upon diagnosis of diseases including heart attack, paralysis, cancer, liver transplant, etc. listed under your health plan.  The full sum of money can be used to pay off treatment costs, medical bills, debt or recovery expenses. In most cases, you need to show diagnostic test reports and the claim is settled on completion of a 30 days survival period. Some other benefits of critical illness insurance are, it has an easy claim process, lesser waiting period and tax benefits. 

Who Needs Critical Illness Insurance?

With the rising medical costs and increasing cases of critical illnesses. It is necessary to buy a critical illness insurance plan. For example, breast cancer has become a prevalent condition and its treatment and surgery cost ranges between Rs. 10 and 16 lacs. A liver transplant ranges even more from Rs. 25 to 36 lacs. 

A large number of people aged 20-30 are being diagnose with such life-threatening diseases. Which is why there is no set age criterion to buy a critical illness insurance policy. Here are certain factors that make it essential for you to buy this policy:

  • If you have a family history of critical illnesses. Then there are high chances of you developing the same as a matter of genetics. You must buy critical illness insurance to enjoy financial security if you fall ill in the future and avail satisfactory treatment. 
  • If you are the sole bread earner of the family, consider buying this particular policy. It will ensure that your loved ones do not have to go through emotional turmoil or financial crisis after diagnosis of a critical illness. The policy also recompenses for the loss in income along with the treatment cost.

Should You Buy a Standalone or Rider Plan?

Health Insurance

There are several insurance companies from whom you can buy critical illness insurance as a standalone plan. The features of the latter are similar to the standalone plan with only difference in cost. Rider plan covers only a limited number of illnesses. For a Rs 5 lakh plan your critical illness insurance cover is calculate at 50% of the total amount of the plan which will only be Rs 2.5 lakh. In case of a standalone plan you can choose a higher sum insured amount.

People who are not looking for an affordable insurance policy option. It is best to opt for a separate critical illness insurance above your Mediclaim. As it offers extensive coverage. for your family. Both health insurance policies and critical illness policies are useful. They are design to serve specific purpose and supplement each other. However, if you have a limited budget, make sure you choose a rider plan. 


A critical illness insurance can go a long way in ensuring you and your family members. They should receive the best medical treatment without exhausting all your life savings. It offers you more than a traditional health insurance policy. Expensive medical bills in recent times have become a major cause of bankruptcy. This particular policy manages to alleviate some of the financial worry and allows the patient to focus on recovery. One of the biggest advantages of this policy is the flexibility it offers as how you can use the lump sum money. Many people assume health insurance provides them complete protection. But treatment of  life-threatening illnesses are exorbitant and you need a backup critical illness insurance.

Additional Read: Onion Helpful To Treat Health Issues

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