Critical Illness Insurance : Best Private & Government Plan with Features

critical illness insurance


Now a days we are at increasing risk of falling prey to deadly Critical Illness which one cannot predict at any stage of life.
As per the estimate of various health organization one out of four people is prone to these non-communicable diseases like cancer, organ failure as our lifestyle lead to this life-threatening diseases, earlier we used to hear these diseases were only common among older generations.

What is critical illness insurance?

Critical illness insurance is more like a benefit plan designed by the insurance company to meet the demand of growing critical illness at any stage of life.
Critical illness are life threatening disease which require huge treatment cost in lakhs and numerous visit to hospital, at times treatment not possible in small towns or in your country due to deficit in medical care require to treat such diseases.
Insurer cover specific and listed diseases in the event of any claim arising pertaining to such diseases during a policy period.
These diseases can vary from insurer to insurer.
As these plans are benefit plans to in case of any claim arising due to these illness total sum insured will be paid out policyholder irrespective of the medical expenses incurred for the treatment of the illness.

Why should I buy critical illness insurance policy?

One should consider buying a critical illness plan due to a kind of our unhealthy lifestyle coupled with smoking, drinking, obesity, work & personal stress, lack of physical exercise, dependence on junk food.
Now a days even younger generations are suffering from life threatening diseases due to the above factors.
Our generation living such lifestyle do have corporate health insurance or any private health insurance but those indemnity provide cover to the hospitalization.
Have we thought about the toll this critical illness will take on our physical, mental, emotional, and financial health status?
If not please think about these factors in case one falls prey to this deadly disease.
As these life threatening diseases will impact your productivity and in majority cases you lose your job as a frequent visit to hospitals and your body does not allow you to take workload pressure that will go to drain all your savings and investment.
Your loved one might have to forego their dreams to save your life.
Many critical illnesses are hereditary in nature so individuals who have family history of having any critical illness must opt got a critical illness plan.
So, considering all these factors one should consider buying critical illness plan even though you have Mediclaim plan

Features of critical illness insurance policy

1. Sum insured is paid as a lump sum in the event of diagnosis of any listed diseases.
2. Provide accidental death benefit.
3. Provide protection against any disability.
4. Under income tax act of 1961, provide benefit up to 25k for self and family and for dependent parents up to 50k under sec 80D.
5. The medical screening is required if the insured age is more than 45 years.
6. You can claim once for any terminal illness if diagnosed during policy period and once claim is paid your policy stands terminated.
7. Waiting period of 90 days is applicable generally in all policies to reduce the risk of insurer.
8. Survival period is generally 30 days insured must survive to claim the benefit from the time terminal illness is diagnose.

Best Private insurance plan

  1. Bharti AXA Smart Health Critical illness Policy.
  2. Religare Care Insurance Policy.
  3. Apollo Optima Vital Health Insurance Policy.
  4. Max Bupa CRITICARE Policy.
  5. HDFC ERGO Critical Illness Policy.

How to buy insurance?

Critical illness plan can be bought from any general insurance company, health insurance company or life insurance companies providing CI as a rider benefit.

CI can be purchased online from the respective insurer website or else can be purchased from their branch offices.

Whatever channel you choose to buy, ensure you deal with authorized dealers and hold an IRDAI License.

How to claim?

In case of any critical illness being diagnose during the policy period, immediately intimate the illness to your respective insurer
and refer the terms and condition outlined by your insurer so that you follow the right steps for filing claim.
In case of any doubt, you may contact their support center over the call/mail to seek require support in filling claim for terminal illness
and remain cautious while you are furnishing your illness details as these telephone lines are recorded and at times claim team do audit these conversation to ensure the viability of the claim fact.
As a human being at times people implicitly tell some medical information which might create a hurdle in your claim settlement.

Basic steps when one need to file claim would be

  1. Intimate your insurer about the diagnose of the terminal illness.
  2. Need to submit duly filled claim form.
  3. Need to provide KYC document like income, age, and address proof.
  4. Medical reports claiming the diagnosis of terminal illness.
  5. In case of accidental, FIR will be required.
  6. Detailed discharge summary or death summary depending upon the scenario along with cost of medical expenses.

Major critical illnesses covered

Critical Illness cover varies from insurer to insurer majorly the illness covered are:

  • Heart attack
  • Stroke
  • Major Organ Transplantations
  • Kidney failure
  • Paralysis
  • Cancer

Critical Illness Insurance Plan from Government of India

Very few insurer owned by the GOI offers CI plan due to nature of benefit. Let check out the ones available in the market.

1. National Critical illness Policy
Offered by National Insurance company owned by GOI. It provides cover for the diagnosis of major illness such as cancer, heart or renal failure, etc. as per the list outlined by the insurer. One may refer complete list on their website. As per their terms and conditions on the first diagnosis of the covered critical illness during the policy period if the insured survives for the survival period will be paid in full sum insured.
Click here to open the policy details in PDF. (Source-NIC)
2. LIC’s New Critical Illness benefit rider:
LIC also provides CI benefit as a rider to the non market linked plan (endowment plan) as a base plan. That helps in reducing the financial burden in case insured has opted for rider benefit and get diagnosed with any listed disease by the insurer during the enforcement of the policy. The only CI sum insured will be paid once during the term of the policy.
Click here to open the policy details in PDF. (Source-LIC)
Offered by United India Insurance company which is designed to provide to major critical illness. The good thing about this plan is that they over wide range of sum insured and covers only 11 major critical illnesses and comes with lifetime reliability. Provide lump sum compensation in the event of first diagnosis of a covered illness during the term of the policy.
Click here to open the policy details in PDF. (Source-UNI)


Well the only downside we can consider in this plan that it will not reimburse hospitalization cost and terms & conditions outlined by the insurer will be quite stringent as it’s benefit plan.
Therefore, we as human should buy a health insurance plan to meet Mediclaim expense and this plan can be purchased as a rider at additional cost to reduce the financial trauma that one undergoes on diagnosis of critical illness as these illness totally us and our family.

Question and Answer Session

What is Critical illness insurance premium calculator?
Calculators will help in calculating the cost you need to incur for the purchase of CI plan.
Generally, it calculated based on sum insured, one would like to opt, along with age, gender and declaration about the pre-existing diseases.
What is critical illness insurance for family?
This plan can be purchased for the complete family on a family floater or individual basis. Depending upon your budget and goal.
Health insurance with critical illness cover?
These days insurers provide health insurance cover with critical illness cover to provide wholesome benefit to insured.
Health insurance will help you in covering hospitalization expenses up-to your sum insured wherein CI will help you,
in case hospitalization happened on diagnosis of any listed diseases with lumpsum amount to lessen your other financial burden like of loss of pay, EMI payment and other expenses related to hospitalization.
Accident and critical illness insurance?
Accidental policy should not be mixed with the CI plan as these entirely different plans designed to meet different need of the customer.
As accidental insurance will only provide benefits in the event of death or disability caused due to an accident,
Where CI provides a lump sum benefit on diagnosis of critical illness.

Additional Questions

Term insurance with critical illness cover?
Term insurance with critical illness cover is the best way to secure your peace of mind as life is very uncertain and one should always keep investment and insurance separate so best way to get insured is to have term insurance with CI that will give dual benefit, as term insurance will only be applicable in the event of death wherein your family get the benefit when you are not there for them, but in case during the term of policy you diagnose any critical illness then CI rider will help in covering the financial burden that you may face due to loss of the job, EMI payment and hospitalization expense as it will pay one lumpsum amount.
What is critical illness insurance with no waiting period?
Well there is no such plan currently in the market which offer zero waiting period.
As critical illness develops over a period it is not something accidental which strike someone.
What is “No pre medical test” for critical illness insurance?
Well in most cases, Insurer conduct pre assessment call with accredited doctor to understand the health status of the individual, or else the medical would be required before issuance of the policy to rule out high risk associated.