Critical Illness Insurance: Need Of The Hour

Critical Illness Insurance: Need of The Hour


Kirti Saxena

Considering today s lifestyle the fear of living is more than the fear of death. The increase in life threatening diseases has made people worry how they would survive if they are diagnosed with some critical illness. This very thought makes them feel it is better to die then to bear the cost of critical illness. But with critical illness insurance you can rest assure that if you are detected with some critical illness your critical illness insurance policy would ensure that you have enough finance to deal with it.

What is critical illness insurance?

It is an insurance policy wherein you receive a lump-sum payment, that too tax-free, till the sum assured if you are detected with any life threatening disease that is listed in your policy. This one time lump-sum payment takes care of your financial debts and provides assistance in purchasing medical aids such as wheel chair, if the need arises.

Heart attacks, cancer, multiple sclerosis, paralysis, stroke are some of the critical illnesses that can devastate your health and finance and hence, it is important that you take critical illness insurance.

Should critical illness be part of existing mediclaim policy or a stand-alone policy?


You have the option of taking critical illness rider with your existing health or life insurance policies. But if you opt it as a rider then it cannot exceed the sum assured of the base policy. For example if your health insurance policy covers you for Rs 2 lac then the critical illness cover cannot exceed Rs 2 lac coverage.

In stand-alone policy you can take a higher cover or as much cover as you think would suffice your need.

The premium would also vary as going in for rider would be less expensive but taking a new policy with high sum assured would demand more premiums. But do remember that the coverage amount should be high if you if you do not have some other arrangement to deal with the crisis if the situation arises.

What are the exclusions to watch for while buying critical illness insurance?

It is essential to know about the exclusions of insurance policy so that you be prepared in emergency situation and are not under any false impressions.

The critical illness mediclaim policy may not cover all the chronic ailments. Read carefully the list of illnesses that are covered and that are not covered.

Generally the following are not covered:

Critical illness due to consumption of drug abuse, smoking, alcohol

Critical illness due to genetic disorder

Critical illness due to HIV

Critical illness due to suicidal attempt

Critical illness due to participating in criminal activities

Kirti Saxena is a web enthusiast and a writer for different areas including insurance and banking and numerous other sectors. For more information visit:

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