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All You Need to Know About Critical Illness Insurance

Cardiovascular diseases like cancer, stroke and pulmonary diseases are taking a toll on working adults and others in India. One of the primary reasons could be a high-stress level. The treatment of an individual suffering from any such disease involves high-cost. Having known this, it becomes imperative to buy insurance coverage for fighting such critical diseases. Unfortunately, if you get caught with any such disease in the future, it might burden your finances to a large extent.

Many insurance companies provide critical illness insurance benefit with a basic life insurance plan, depending on the plan you choose. A critical illness insurance policy provides financial coverage to deal with life-threatening diseases like heart stroke, kidney failure, and other lifestyle diseases.

Critical Illness Insurance

For adding this rider to a life insurance policy, usually, the minimum required age of an individual is 18 years, and the maximum can be 65 years, which might vary. Moreover, the benefits and features of critical illness insurance might vary across the providers. A few common features usually involve flexible payment options, receiving the lump-sum amount, hassle-free claim process, and coverage against multiple diseases.

Apart from these benefits, there are other significant reasons for buying a critical illness insurance policy, such as:

Rising Medical Cost
With the inflating medical costs and hospitalization expenses, it is difficult to manage a massive amount in case of any medical emergency. It is good to stay financially secured with a critical insurance policy and be ready to fight such untoward situations.

Alternative to Your Income-loss Due to Illness
Unfortunately, if you catch hold of any critical disease, you will not be unable to work for a considerable period. To meet your routine household expenses and others, it is necessary to have funds available. A part of your claim amount might act as an alternative to your income.

Above mentioned reasons make it essential for you to be prepared in advance for any unexpected disease and to shield your family against financial problems, which might occur.

How to Buy Critical Illness Insurance Cover?



After knowing the importance of critical illness insurance, it is significant to know the step-wise process for signing up for one.

1. Assess Your Needs
Depending on your financial health, decide the amount of insurance you might require if you are diagnosed with any life-threatening disease in future. Irrespective of the income-group in which you fall, it is advisable to buy a health insurance plan to avoid financial difficulties later.

2. Research and Choose a Base Life Insurance Policy
After you’ve decided to buy a health insurance plan, it is preferable to compare different life insurance plans available across various providers and choose an appropriate plan. Generally, people choose an insurance plan which provides maximum benefits in the premium amount they can afford every month.

3. Opt for Critical Illness Rider
After you’ve chosen the base life insurance plan, consider choosing critical illness insurance as an add-on benefit. With the increasing number of people suffering from life-threatening diseases, it is necessary to keep your family financially protected. A critical illness rider will provide financial assistance if you’re diagnosed with an acute illness, like heart stroke, kidney failure, chronic lung disease, paralysis, etc.

Critical Illness Insurance

According to the WHO (World Health Organisation), the number of deaths caused by such NCDs (Non-Communicable Diseases) might increase to 55 million by 2030 if any preventive measures will not be taken.

Therefore, it is advisable to buy a life insurance policy with a critical illness rider. Different insurance providers provide varying benefits; choose one which covers the maximum number of diseases and includes maximum benefits.

4. Payment of Premium
After you have selected a life insurance policy with a critical illness insurance rider, you are ready to move forward in the process. You need to fill in your basic personal information and other details and pay your first premium amount.


5. Fill Out the Proposal Form
This is a detailed version of your primary insurance form. In this, you need to fill in all the details related to your health and lifestyle, hereditary diseases, etc. Your lifestyle-related information must include your habits like drinking, smoking, etc. if you have any.

You should be truthful about your information in this form; otherwise, it might lead to the rejection of your claim later if your information turns out to be false. The insurance provider might even cross-check your information with a third party if you allow it.

6. Medical Test
After you have submitted your proposal form and other documents, a medical test is conducted before offering you a critical illness insurance cover. This is performed to check if there is any pre-existing ailment or not, etc.

Such life insurance products with riders have been launched to lessen your burden and cut down your worries if any unexpected disease comes your way. It is usually difficult for the family to manage mental and financial stress together during such situations, which further aggravates the concerns. Keeping yourself and your loved ones financially secured by buying a critical illness insurance rider is one of the best things you can do to tackle any life situation!
Image Credits: Shuttershock

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 3rd May 2021.

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