Critical Illness Insurance


Critical Illness Insurance is a limited type of health insurance that pays a lump sum amount if the life insured is diagnosed with any critical illness.

The claim amount is paid if the named insured is diagnosed with any named critical illness included in the policy. Critical Illness Insurance policies cover all stages of diseases like renal and cardiac ailments, cancer.


A critical illness policy comes at a low cost. It provides additional coverage with the basic health insurance policy. The insurance policy pays for your high costs of treatments for critical illnesses. The policy can be taken as a standalone cover or opted as a rider under a life insurance policy. Primary breadwinners can opt for the cover if they cannot afford the treatment cost of critical illness.

Two types of critical illness insurance policies that are available include:

Cancer Policy: The life insurance policy pays the life insured when diagnosed with cancer. It covers all stages of cancer and gives the benefit of premium waiver when the insured suffers with an early stage of cancer. The policy also comes with the option to receive monthly income when life insured is diagnosed with a major stage of cancer.

Critical Illness Policy: The life insurance policy pays for heart and kidney ailments. The policy covers all stages of diseases. The insured gets a premium waiver on diagnosis of an early stage of illness. The insurance policy provides income benefit after diagnosis of major stage illness


Naman bought a critical illness policy along with the health insurance policy. The sum assured under the critical illness policy was Rs.10 lakhs. Due to work pressure and poor lifestyle, Naman suffered a major heart attack. Under the Critical Illness Insurance he owned, the life insurer paid him a claim amount of Rs.10 lakhs.