Critical Illness Insurance: Who Needs Critical Illness Insurance?

Critical illness insurance provides the policyholder cover against specific illnesses, such as cancer, stroke, etc. The insurer can offer financial assistance to cover the cost of medical treatment that might arise due to a critical illness.

Read on to understand who should buy critical illness insurance.

The hospitalisation expenses are increasing. Not everyone can afford it from savings alone. However, health insurance policies can help a person pay for the exorbitant costs. But a few illnesses like cancer, renal failure, etc. aren’t covered in most health insurance plans. The hospitalisation expenses for such a disease can be very high. To get cover against such illnesses, a person can consider purchasing critical illness insurance.

Let’s take a look at a few differences between health insurance and critical illness insurance-

  • Health insurance covers hospitalisation expenses. Critical illness insurance covers critical diseases like heart attack, kidney failure, etc.
  • Generally, to avail the cover of health insurance, a policyholder needs to submit hospital bills. Furthermore, he/she can avail cashless facility at network hospitals. However, hospitalisation isn’t required to avail the benefits of critical illness insurance.

Benefits of Critical Illness Insurance

  • Cover

Health insurance policies don’t cover critical illnesses. Therefore, a person might have to pay for the expenses from his/her pocket. However, by purchasing critical illness insurance, he/she can receive cover against various critical diseases, such as cancer, heart attack, renal failure, etc.

  • Lump-Sum Payment

The insurance provider can pay a lump sum amount to cover the hospitalisation expenses incurred due to a critical illness.

  • Income Replacement

A policyholder can also use a part of the lump sum to replace the income lost due to a critical illness.

Who Needs to Purchase Critical Illness Insurance?

The expenses that are incurred due to hospitalization can be high. It is recommended that everyone purchase a health insurance policy to safeguard themselves from such expenses. Furthermore, there are many critical illnesses that a regular health insurance policy doesn’t cover. Thus, critical illness insurance can be beneficial.

Here are people who should consider purchasing critical illness insurance-

  • People Who Have a History of Critical Illness

The likelihood of a person suffering from a critical illness is high if someone in his/her family has that disease. Therefore, it is recommended that every person who has a history of critical illness in his/her family should purchase critical illness insurance.

  • People Who are 40 Years and Above

As a person gets older, he/she can become more vulnerable to critical illnesses. Hence, purchasing critical illness insurance can save a lot of money for people who are 40 years of age and above.

Why Critical Illness Can Be Beneficial

Most critical illnesses aren’t covered in standard health insurance policies. Therefore, the medical costs incurred due to such diseases can be expensive. With the help of critical illness insurance, you can get financial assistance to cover the hospitalisation expenses due to a critical illness.

Furthermore, if you are diagnosed with a critical illness, then the insurer can pay the sum assured to you as a lump sum amount.


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