What you need to know about critical illness insurance policies

As many illnesses come without indication, people prefer to be prepared for such kind of unfortunate incidents with a health insurance policy. Since critical illnesses carry the huge potential to snatch money from someone, many people also opt for critical illness insurance.

Read also : What to Consider When Buying Family Health Insurance

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

What is critical illness insurance?

Among a wide range of insurance policies, critical illness insurance will provide a person with coverage for serious illnesses like cancer, heart disease, stroke, and kidney failure. This type of policy can help a person cover the cost of treatment and recovery, as well as loss of income if they are unable to work.

This type of policy will also provide mental relief that a person with his family is protected against this type of disease.

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

People can also use critical illness coverage to supplement their already existing health insurance policy, health insurance plans often miss out on these illnesses making people financially vulnerable to these illnesses. People with high-deductible healthcare plans may consider adding critical illness insurance to cover treatment costs if they become ill.

Things to keep in mind before buying a critical illness insurance policy

An insurance policy has immense benefits, and it is up to the insurer to find out which benefits are of utmost importance to him. Apart from the benefits, there are some aspects that people need to take care of.

Here are some considerations you should keep in mind:

-Know the number and types of illnesses covered by the policies: Not every critical insurance policy provides protection against the same set of illnesses and conditions. First, they only cover a handful of illnesses, and other insurance policies cover a wide range of illnesses. A critical insurance policy provides coverage for critical illnesses like cancer, heart attack, or stroke. Therefore, people should carefully list the diseases that concern them the most.

For example, if a person has a family history of cancer, then he might want to find a policy that provides coverage for that disease. Apart from critical illnesses, this type of policies do not cover conditions such as Alzheimer’s disease, Parkinson’s disease, deafness, etc.

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

– Exclusions and limitations clauses: Each policy has its exclusions and limitations. This is why the insurer must read the fine print in order to be aware of what is not covered by the policy.

-Benefits and Advantages: Each policy offers different types of benefits to the insurer. Some policies provide lump sum payments to the insurer upon diagnosis of the covered illness. While other policies provide coverage for medical expenses and loss of income.

-Deductibles and co-payments: These types of policies come with deductibles and copayments. A deductible is an amount that must be paid by the insurer before health insurance starts paying. A person should compare the deductibles and co-payments of different essential insurances to find their best match in terms of budgets and benefits.

– Premiums: Policy premiums may vary from company to company and also from insurer to insurer. Therefore, people should compare the premium amount of different policies before purchasing one.


Before embarking on any type of critical high premium insurance plan, it is always best to consult your financial advisor or a health insurance agent for all the details. Only after analyzing the pros and cons of these types of policies should a person decide whether to join them or not.

Catch all the trade news, market news, breaking events and the latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Comments are closed.