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Skim Through the Pros and Cons of Critical Illness Health Insurance Plans


Feb 19 2020


Life is getting more and more sedentary, reflected clearly from the figures that show a continuous rise in the number of critical illnesses surfacing in present times. We all know that getting them treated costs a fortune. Hence, a critical illness plan for yourself and/or your family members is imperative, especially with the medical expenses skyrocketing.

Life is unpredictable, and there may be instances when your family needs more financial support than what you have managed to save up. A critical illness cover makes getting through such difficult times trouble-free, at least financially. Health insurance surely acts as a reliable financial aid when you need it the most.

Before contemplating purchasing it, let us skim through the pros and cons of a typical critical illness health insurance plan.

What is a critical illness insurance policy?

Critical illness health insurance policies are synonymous with health insurance policies. While a health insurance policy covers general medical requirements with specific exclusions, a critical illness insurance policy covers only a set list of critical illnesses and surgical procedures.

Before getting into the pros and cons of a critical illness policy, you must know of some unique pointers associated with it. Some of the pointers are listed below:

    1. List of critical illnesses covered: The set list for critical diseases that are covered under the policy.

    2. Procedures for filing claim: How to file for a claim and the claim payout options. E.g., there can be a lump sum payout or a staggered payout option or both under a critical illness cover.

    3. Renewal benefits: Benefits that are made available to you upon renewal of the policy.

    4. Age eligibility: The eligible age to enter the policy.


Critical illness insurance pros and cons

The pros and cons listed below will provide you with a better understanding of a critical illness plan. Let’s check them out:

The Pros:

  • Critical illness covers can help you in paying off costly medical expenses for a particular set of diseases. If any illness gets diagnosed and meets policy requirements, you receive a lump sum or staggered payout to meet the medical condition.
  • As a critical illness policy covers specific critical illnesses, it offers a more significant cover at a price lower than other comprehensive medical insurance plans.
  • A critical insurance policy covers you even when you avail of the treatment in a foreign country. This means that the policy can assist you also if you need to go abroad for further medical treatment.


The Cons:

  • The biggest disadvantage of a critical illness plan is that the payout is applicable only when a critical illness is diagnosed. This means that you will be covered only if a doctor confirms that your illness concurs with the policy’s definition of ‘critical’. In all other respects, no payment is made.
  • The second disadvantage is that critical illnesses are defined limitedly by insurers. That is why there is no guarantee that you will receive the sum insured even if you are diagnosed with a critical illness listed in the policy.


Buying Critical Illness Insurance?

Only after carefully weighing the pros and cons should you select a critical illness insurance plan for yourself or your family member. Read the terms and conditions of the critical illness plan document carefully before signing it. Ensure that you read the exceptions and exclusions to get the right cover. Also, go for a plan that fulfills the maximum requirements with minimum exclusions.

ManipalCigna offers the Lifestyle Protection Critical Care plan to cover you against around 30 critical illnesses. While the basic plan offers protection against 15 critical illnesses, the enhanced ManipalCigna Lifestyle Protection Critical Care plan offers coverage for close to 30 different critical illnesses. You receive the entire payment of your sum insured on first diagnosis of any of the listed illnesses.