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Business News/ Money / Personal Finance/  Things you should know about critical illness insurance policies

Things you should know about critical illness insurance policies

There are many types of health insurance policies available in the markets. One of the popular options is critical illness insurance, which provides cover against critical illnesses like heart disease, cancer, etc. Before opting for it, know the basics of critical illness insurance policies here

Critical illness insurance policies are becoming widely popular these days as they protect the insurer against critical illnesses. Premium
Critical illness insurance policies are becoming widely popular these days as they protect the insurer against critical illnesses. 

As many illnesses come without indication, people prefer to be prepared for such kind of unfortunate incidents with a health insurance policy. As critical illness carries the huge potential of ripping someone out of money, many people are also opting for critical illness insurance.

Also Read: What to consider while buying health insurance for family

With this type of policy, people would be able to get financial assistance if they are diagnosed with a critical illness. Such kind of policies proves to be of major value in a person's health insurance plan. But before opting for a critical illness insurance policy, it is better to understand all its aspects for the right decision.

What is critical illness insurance?

Between a wide range of insurance policies, critical illness insurance will provide a person cover for critical illnesses like cancer, heart disease, stroke, and kidney failure. Such kind of policy can help a person in cover the cost of treatment and recovery, as well as lost income if he is unable to work.

Such kind of policy will also provide a mental relief that a person along with his family is protected from such kind of disease.

Also Read: Health insurance: Parents can insure dependent children only

People can also use critical illness cover to supplement their already existing health insurance policy, health insurance schemes often miss out on these illnesses, making people financially vulnerable to such diseases. People who have a high deductible health plan can consider adding critical illness insurance to cover the costs of treatment if they become ill.

Things to Keep in Mind before buying a Critical Illness Policy

An insurance policy comes with immense benefits, and it is up to the insurer to find out what benefits that are of utmost importance to them. Apart from benefits, there are certain aspects which people need to take care of.

The following are some considerations that you should keep in mind:

-Know the number and types of diseases covered in policies: Every critical insurance policy doesn't provide a guard to the same set of illnesses and diseases. First of all, they cover only a handful of diseases, and other insurance policies cover a wide range of illnesses. A critical insurance policy provides cover for critical illnesses like cancer, heart attack, or stroke. Hence, people need to carefully figure out the list of diseases they are most concerned about.

For instance, if a person has a family history of cancer, then he might want to find a policy that offers coverage for this disease. Apart from critical illnesses, such kind of policies don't provide cover for conditions like Alzheimer's disease, Parkinson's, deafness, etc.

-Amount of coverage: The amount of coverage one needs depends upon the personal circumstances of a person. A person can opt for a policy that will provide cover only the costs of treatment and recovery, on the other hand, people can also opt for compensation for lost income if they are unable to work due to illness.

-Clauses of exclusions and limitations: Every policy has its exclusions and limitations. That's why the insurer needs to read the fine print so that be aware of what is not covered in the policy.

-Benefits and perks: Every policy provides different kinds of benefits to the insurer. Some policies have the provision of lump sum payments to the insurer in case of a diagnosis of the covered disease. Whereas, other policies provide coverage for medical expenses and lost income.

-Deductibles and Co-Payments: These kinds of policies come with deductibles and co-payments. A deductible is an amount that needs to be paid by the insurer before the health insurance begins paying. A person must compare deductibles and co-payments of different critical insurance to find their best match in terms of budgets and benefits.

- Premiums: Premiums of a policy may vary from company to company and also from insurer to insurer. Hence, people should compare the premium amount of different policies before purchasing one.


Before jumping into any kind of high premium critical insurance scheme, it is always better to consult with your financial advisor or a health insurance agent to know all the details. It is only after analysing the pros and cons of such kinds of policies that a person should decide whether to opt for them or opt-out of them.

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Published: 01 Oct 2022, 09:41 PM IST
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