What is the Critical Illness Add-On Cover in Health Insurance?

A critical illness add-on cover is an additional cover to your base health insurance plan. This provides medical coverage for major illnesses with lump sum payments. Sole earners and individuals in their 40s can avail this benefit. Let us understand more details about this add-on.

What is the Critical Illness Add-On?

A critical illness add-on is a health insurance benefit which covers treatment for life-threatening diseases. These include attack, cancer, kidney failure, paralysis, and so on. You can buy a critical illness cover as a dedicated policy or as a rider to your existing policy.

You will get a lump sum payment if you have gone through a diagnosis with a critical illness cover under your policy.

What are the Key Features of the Critical Illness Cover?

A critical illness cover provides medical coverage for major illnesses, with a lump sum payment and a waiting period. Have a look at the key features of this add-on coverage:

1. Coverage for Major Illnesses

The critical illness add-on provides coverage for a wide range of life-threatening diseases, like heart attacks, strokes, cancer, and brain surgery. However, the number of diseases can vary from insurer to insurer.

2. Waiting Period

This type of insurance plan has a waiting period of up to 90 days. You can file a claim only after serving this waiting period. This waiting period may also vary among different providers.

3. Lump Sum Payout

Health insurance providers offer a lump sum payment if you are diagnosed with any of the listed critical illnesses of an insurance provider. This lump sum amount is used for treatment and recovery expenses and to reduce the financial burden.

4. Survival Period

The critical illness plans also include a survival period of a maximum of 30 days. According to this clause, you can get a critical illness benefit if you survive this period after being diagnosed with a critical illness.

5. No Coverage for PED

Most of the critical illness add-on cover does not cover any pre-existing diseases (PEDs) or congenital conditions.

Who Should Avail the Critical Illness Add-On Cover?

1. People With a Family History of Critical Illness

Since some of the critical illnesses are hereditary, there is a strong possibility of other family members developing them. So, people with a family history of critical illness need to buy critical illness add-ons.

2. Individuals Aged Over 40

People aged over 40 might have a greater risk of developing critical illnesses. As a result, one must consider buying it in their late 30s. This helps you complete the waiting period and use the coverage at any time.

3. Sole Earning Member

Sole earners also need this policy to ensure the financial security of their families.

Final Thought

A critical illness add-on helps you get exorbitant treatment costs for a wide range of illnesses. Ultimately, a critical illness add-on gives you peace of mind by lowering your financial burden. Before purchasing it, assess your needs and the terms and conditions of this add-on.