| Login | Sign Up

How does a Critical Illness Cover differ from Health Insurance Cover?

Community Manager




In spite of having a comprehensive health insurance plan, and a group cover from your employer, does it make sense to take another policy for critical illnesses?


Piyush, an IT professional at the age of 40 had to undergo a sudden medical surgery for skin cancer. Till the time he was undiagnosed he always avoided unnecessary expenditure pertaining to insurance policies. Surprisingly, Piyush is not the only one as majority of people avoid spending money on having too many policies in a lifetime.


The number of cases related to acute illnesses is rising each day. A sudden exposure to such diseases can eat away savings and damage the body partially or permanently. Unfortunately, realization comes at a stage when an individual or his family is drained emotionally, mentally and financially.


Health insurance cover is a generic term used for comprehensive coverage for treatments and medical cost of all major and minor illnesses, accidents which may need hospitalization. On the other hand,critical illness cover is designed for a focused and specific set of illnesses which are defined as critical by the insurance provider. These illnesses are generally considered to be life-threatening and therefore involve much higher cost of treatment.


Let’s understand the details regarding critical illnesses in regards to health insurance sector


What is a critical illness?


Critical illness is a health related condition of a serious nature. It can permanently or temporarily damage the body and can make a person financially dependent.


What is critical insurance illness cover?


Critical illness insurance, popularly known as a critical illness cover is a policy under which the insurance company makes a lump sum payout to the insured on diagnosis of a specific illness which is mentioned in the pre-defined list of diseases covered. 


What are the types of critical illnesses covered under health insurance policy?


Heart attack, cancer , paralysis, coronary artery bypass surgery, major organ transplant (e.g. heart, lung, liver, pancreas), stroke, kidney failure are covered under critical illness policy. Critical illnesses diagnosed within first 90 days from the inception of policy and death within 30 days of diagnosis of critical illness or surgery forms part of the exclusions but may still vary from policy to policy.


Who can benefit from the critical illness?


The critical illness policy can be hugely beneficial to all…People who understand the impact of these grave diseases as well as have a family history of such critical illnesses.  And also for people who are sole bread earners, have dependents and thus can’t afford any financial instability. With cost of health care only escalating; critical illness health plan is a blessing in disguise and can surely help to lessen your financial burden.


What to consider before buying critical illness policy?


To avail maximum benefits and cover it’s imperative to know how to choose the right kind of policy in case of medical emergency tomorrow. Apart from inclusions and exclusions others factors to be seriously considered are treatment cost, benefits offered, recurring cost, future financial liabilities, family history of illnesses, premium to be paid, standalone or rider, age-group etc.


Get the Balancing act


One can buy critical illness policy as a standalone policy or either combine critical illness riders with existing health insurance plans. But, choice of it would purely depend on the nature of the requirement.