Part of the same group
Health insurance · Critical illness
A lump sum for the illnesses that change everything.
Critical illness cover pays a fixed amount when you are diagnosed with one of the illnesses the policy lists, whatever the hospital bill. It is for the costs health insurance does not see: lost income, travel for treatment, changes at home.
Reviewed
In short
- Pays a lump sum on diagnosis of a listed illness, rather than reimbursing bills.
- Available as a policy of its own, a health insurance add-on or a life insurance rider.
- Usually pays only if you survive a stated number of days after diagnosis, commonly thirty.
How it differs from health insurance
Health insurance pays hospital bills, up to the sum insured. Critical illness cover pays its sum assured once, on diagnosis, and you decide how to use it. Many people hold both.
What decides whether it pays
The illness must be on the policy’s list and meet its definition — including the severity the definition requires. A condition with the same everyday name is not necessarily the condition the policy covers.
Policies have an initial waiting period, often ninety days, and a survival period after diagnosis. Both are stated in the wording.
What to check
These decide whether cover is real when you claim. Read them before the premium.
The list of illnesses
More is not always better. Check that the illnesses that matter to you are covered, and at what severity.
Survival period
The number of days you must survive after diagnosis before it pays.
Initial waiting period
A diagnosis during the first months of cover is usually excluded.
Rider or standalone
A rider ends with the life policy it is attached to; a policy of its own can be renewed on its own terms.
Existing conditions
An illness you already have, or have been treated for, is usually excluded or waits longer.
Questions people ask
General guidance. Your policy wording decides the specifics.
Do I need critical illness cover if I have health insurance?
Health insurance pays the hospital; critical illness cover pays you. It is worth considering if a serious illness would stop your income or bring costs that no policy reimburses.
How much cover should I consider?
A common approach is enough to replace a few years of income while you recover. It depends on your savings, loans and the other cover you hold.
Does it pay more than once?
Most policies end after one claim. Some pay for more than one group of illnesses, at a higher premium.
Is there a tax deduction for the premium?
A critical illness policy issued as health insurance can qualify for the same deduction as other health premiums under the old tax regime. Check the current rules, as they change.
Insurance is the subject matter of solicitation. Benefits depend on the policy terms and the insurer’s decision; read the policy wording before buying.