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Checklist for Choosing the Right Critical Illness Health Insurance Plan

Team AckoJul 22, 2021

Health insurance options can be empowering as well as confusing. On one hand, you have the liberty to choose from a variety of plans and on the other hand, you might get confused with so much on offer. There might not be much to differentiate between plans.

Choosing the Right Critical Illness Health Insurance Plan

Nowadays, it has become extremely easy to compare health insurance plans online. This way, you can narrow down your options, but you will have to have some parameters in place that will help you make the final choice. This applies to Critical Illness insurance as well. Read ahead to know more about Critical Illness insurance and how to go about purchasing it using a handy checklist.

Understanding Critical Illness Insurance:

Critical illness policy is designed to provide an insurance cover against life-threatening diseases. This is a one-time benefit cover. The insured person receives a lump sum amount as a benefit upon the diagnosis of a critical illness mentioned in the policy document.

It should not be confused with a basic health insurance policy. Critical illness policy is a part of the health insurance umbrella but has different features and benefits. It is a type of health insurance policy that one can choose to strengthen the health insurance portfolio.

Critical Illness Checklist:

There are multiple policies in the online health insurance market offering different kinds of covers. Here’s a list of points you should base your purchase decision on.

Sum Assured:

This is the amount you shall receive upon diagnosis of a critical illness. The pay-out should be high enough to help you in case of an illness. You can make this decision considering the amount of savings you have in the bank plus your other financial backups. However, it is suggested that the sum assured of a Critical Illness plan should be five times of your annual income.

Waiting Period:

Like other major health insurance plans, Critical Illness plans also have a waiting period. This means you cannot raise a claim against the policy for a specified period. The waiting period in a Critical Illness plan might be in the range of one to three months after purchasing the plan. A lower waiting period is desirable.


Choosing a policy with the lowest premium is a no-brainer. However, do not compromise on the coverage while doing so. Online health insurance companies usually have a premium calculator on their websites. It is free and easy to use. Make use of it to find your ideal fit.


Premium and cover are co-dependent. Select a plan that charges less but covers the diseases you want to be shielded against concerning the expenses associated with treating them. An extensive list of diseases featuring in the inclusions column of the policy document should be preferred.


Critical Illness plans usually have a cap when it comes to renewability. The policy might not be renewable beyond a certain age. Choose a plan with a higher age limit so that it can be renewed in the long-term as well. Also, check for sub-limits regarding claims. For example, sub-limit for surgery, for diagnostic tests, etc.

Also, read: Critical Illness Insurance Cover for the Self Employed

Need for a Critical Illness Cover:

A major disease can be traumatizing for the patient as well as the family. Consider Cancer for example. There’s a long battle in store for a person who is diagnosed with Cancer. Daily life can become challenging, a regular job might not fit in the scheme of things, and there will be a constant outflow of money in order to pay hospital bills. Cancer is just one disease, several such life-altering diseases are a bane associated with the urban lifestyle.

Lack of exercise, imbalanced diet, excessive smoking and drinking, etc. are triggers than can destroy a person’s health. In such a scenario, it becomes necessary to safeguard one’s finances with a well-researched Critical Illness cover. This is of utmost importance for people involved in stressful jobs and are sole breadwinners, who have crossed forty years of age, and who have a family history of such diseases.

Diseases are unpredictable but taking precautionary measures is in your control. Make wise decisions, stay insured.

Explore More:

  1. Health Insurance Checklist for First-Time Buyers in India

  2. How to Choose Right Critical Illness Health Insurance Plan?


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