Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin
  Hurry Up!
Save tax in 80D by purchasing a Health Insurance Today. View Plan

Why Critical Illness Insurance is a Must?

Updated On Dec 11, 2020

Life is uncertain and so is the health condition of an individual. You never know what will happen to you, and at what time. There have been cases where people thought themselves to be completely fit and healthy, only to be diagnosed with a critical illness soon after. There is nothing to be afraid of incidents like such. Instead, there is a crucial need for people to understand that since it is impossible to enjoy good health at all times, it’s better to prepare in advance.

Understanding Critical Illness Insurance

Critical illness insurance is a boon in the form of an insurance product. Also referred to as critical illness cover or a dread disease policy, critical illness insurance is a popular insurance product under which the insurer is contracted to make a lump sum cash payment, in case the policyholder is diagnosed with one of the precise illnesses on a pre-set list as part of an insurance policy.

The cover that one gets from critical illness insurance is like a sigh of relief, as it prevents one from dealing with the massive hospitalisation/medical expenses, which are otherwise a task to take care of. After all, it is not possible for one to bear with the rising medical costs, and that too with a significant amount at once.

What makes critical illness insurance an unmatched insurance product is the fact that it provides the insured individual with a lump sum amount for the expenses, which otherwise won’t be possible for them to manage at once.

Who requires Critical Illness Insurance?

Of significant benefit for those who have a medical history and do not want to take risks with their health condition, critical illness insurance is also a big boon for those who cannot afford to lose all their finances in one go. Also, it is really helpful for people without sufficient savings and/or lack employee benefits package that covers prolonged sick leave.

That being said, register that Indians with age over 18 years and less than 45 years can go ahead with buying critical illness insurance. People over 45 years of age may have to undergo mandatory pre-policy medical checkups. Another thing to note is that family members (parents, children, spouse, and siblings) can also be covered under a single critical illness insurance plan. In case, more than one individual is provided coverage under a single policy, each qualifies to get cover once during the policy tenure.

Conditions Covered under Critical Illness:-

First and foremost, take note that illnesses covered under critical illness insurance vary between insurers. So, it is important for one to check the policy details before going ahead with the purchase.

Critical illness insurance policies commonly provide coverage for illnesses such as heart attack, stroke, some types of cancer, and may include optional add-on illnesses. The list of conditions that could be classed as critical illness comprises:

  • Kidney failure
  • Bypass of a coronary artery
  • Paralysis
  • Deafness
  • Traumatic head injury
  • Major organ transplant
  • Parkinson’s disease
  • Coma
  • Heart valve surgery
  • Multiple sclerosis
  • Failure of a major organ
  • Primary Pulmonary Arterial Hypertension
  • Aorta Graft surgery
  • Total blindness and others.


As far as the exclusions in a critical illness policy are concerned, the medical conditions that are not covered include:

  • HIV/AIDS infection
  • Any illness due to smoking, tobacco, alcohol or drug intake
  • Treatment done outside India
  • Critical conditions or consequences, owing to pregnancy or childbirth, including Cesarean
  • Infertility treatment
  • Any dental care or cosmetic surgery
  • War, terrorism, civil war, navy or military operations
  • Illness occurring due to internal or external congenital disorder
  • Birth control
  • Cataract
  • Hernia
  • Overseas medical treatments
  • Death within 30 days of diagnoses of critical illness
  • Critical illness diagnosed within 90 days from the inception


  • Generally, one month after the first diagnosis, the sum assured is paid as a lump sum. Note that this money can be utilised by the insured individual as per their choice
  • Compulsory pre-medical check-ups for those over a particular age, usually 45 years
  • Coverage for day care procedures such as dialysis
  • A grace period of 30 days is usually applicable post diagnosis. The compensation is paid subject to survival during this time
  • Most of the insurance companies have tied up with cashless network hospitals, where treatment can be done without paying cash
  • During the renewal, the sum assured can be changed, according to the insurer’s approval
  • Most insurers do not cover pre-existing diseases, however, some allow cover for pre-existing diseases after a particular period uninterrupted premium payment - usually 4 years and above


  • ​Easy claim settlement
  • Hassle-free documentation while making claim
  • Tax benefits under Section 80D of Income Tax Act
  • Availability of numerous options for premium, policy tenure, as well as sum assured
  • Pre-hospitalisation expense coverage for up to 30 days
  • Lump sum amount paid after a specific waiting period
  • Option to invest in additional riders.

10 Critical Illness Policies in India


No. of Illnesses Covered

Survival Period

Min and Max Sum Insured

Min & Max Age at Entry

Bajaj Allianz Critical Illness


30 days

Rs.1Lakh to Rs. 50Lakh

6 Yrs to 59 Yrs

ManipalCigna Lifestyle Protection - Critical Care

15 (Basic) and 30 (Enhanced)

Not available

Up to 25Crore

18 Yrs to 65 Yrs

Bharti AXA SmartHealth Critical Illness Insurance plan



Rs.2Lakh to Rs. 5Lakh

3 Months to 55 Yrs

Reliance Critical Illness


30 days

Rs.5Lakh, Rs.7Lakh or Rs.10Lakh.

18 Yrs and above

HDFC ERGO Critical Illness Insurance (Silver & Platinum Plan)

8 (Silver)
15 (Platinum)

30 days

Rs.2.5Lakh to Rs.10Lakh

5 Yrs to 45 Yrs

Max Bupa CritiCare


30 days

Rs.3Lakh to Rs.2Crore

18 Yrs to 65 Yrs

SBI Critical Illness


90 days

Rs.2Lakh to Rs.10Lakh

18 Yrs to 65 Yrs

United India UNI Criticare Health Insurance Plan


30 days

Rs.1Lakh, Rs.3Lakhs, Rs.5Lakhs and Rs.10Lakhs.

21 Yrs to 65 Yrs

Apollo Munich Optima Vital Plan


30 to 90 days

Rs.1Lakh to Rs.50Lakh

18 Yrs to 65 Yrs

Star Criticare Plus



Rs.2Lakh to Rs.10Lakh

18 Yrs to 65 Yrs

So, whether concerned about finding the best self or family health insurance plan, note that this list of 10 Critical Illness Insurance policies in India will help you find the best possible plan as per your insurance needs. To uncover more critical illness policies, and that too in a detailed manner, you can visit sites of different insurers.

Also Read

Compare Health Insurance Plans Online Before You Pick One for Your Loved Ones

Best Health Insurance Policies for 30 Year Old People


Health Insurance Coverage Calculator

Who do you want to insured ?

  • Individual
  • Couple
  • Family
  • Parents

Age of eldest insured member ?

Where do you live ?

Disclaimer : Actual Coverage might vary basis your location, age and number of members

Health Insurance News

People Also Read

Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 50 Lacs+ happy customers

Latest Health Insurance Articles