Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Critical Illness Can Disrupt Family's Financial Goals and How Health Insurance Can be Useful

A critical illness policy provides coverage for life-threatening and long-term critical illnesses which a normal health insurance doesn't cover, read the article to know more.

  • Aug 27, 2021

We all make plans for the future using various modes at our disposal. Based on our career and income, we set financial goals for ourselves and our families. But one aspect that is majorly overlooked is that to carry out our plans and keep progressing in our careers, we need a sound mind and body. If your health starts deteriorating, your ability to work may be affected, and this may lead to a loss of income. This will most definitely disrupt all the financial goals that you’d set for the future.

This is where a health insurance policy plan can become a saviour. It plays a vital in offering your financial protection against the hospitalisation and treatment costs. If you or any of your family members are diagnosed with an illness, you can get the treatment without worry about the cost. The insurance company will take care of the expenses. While health insurance has many benefits, it has its limitations.

A traditional health insurance policy may not cover critical illnesses, and it may also not cover expenses if there is no hospitalisation. For protection against critical illness, you may need to buy a critical illness insurance. You can buy a critical illness cover either as a rider or add-on to your primary policy or you can buy it as a separate policy.

What is Critical Illness Insurance?

A critical illness policy provides coverage for life-threatening and long term critical illnesses like heart failure, renal failure, cancer, etc. The insurer pays a lump sum amount to the insured on the diagnosis of the critical disease. The sum can be used to cover the exorbitant medical costs of treatment and restore loss of income for the insured.

A critical illness policy may cover as many as 36 different critical diseases. It can either be a standalone policy that you can buy apart from your regular health insurance, or it may also be available as a critical illness rider that you can add to your existing policy for an additional premium.

Advantages of Critical Illness Insurance

  • Coverage for critical illness
  • A critical illness policy covers as many as 36 major illnesses that include ailments of the heart, kidneys, lungs, brain, and cancers and tumours.

  • Lump-sum payment on diagnosis
  • The best advantage of a critical illness cover is that the payment is made as a lump sum amount after diagnosis of the critical ailment. When someone is diagnosed with a major illness, it can be a very stressful situation.

    On top of the diagnosis itself is the thought that they will need heavy financing to begin treatment. At this time, if the person is insured with a critical illness plan, they will receive a lump-sum payment that they can immediately use to pay for the high treatment costs of such diseases.

  • Restoration of income loss
  • One thing that sets apart critical illness from your usual health insurance is the restoration of loss of income. You can use a part of the lump-sum payment to replace your income if you’re unable to work and your income is affected.


    A diagnosis of a critical illness can put even the best of plans in jeopardy. It can disrupt the financial planning and goals that you set for your family. Therefore, it becomes a necessity to buy a critical illness insurance plan or add a rider to your existing health insurance. This can save you a lot of trouble in unfortunate circumstances in the future.

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Everything You Need to Know About Health Insurance for Parents

Difference Between Open Heart and Bypass Surgery

Health Insurance Plan for Cancer: What You Should Know on Symptoms and Diagnosis of Cancer

Health Insurance for Liver: What You Should Know About the Symptoms and Diagnosis of Liver Problems

Steps to Appeal A Health Insurance Claim Denial

How to File Health Insurance Claims?

How Much Should I be Paying for Health Insurance?

What Is the Restoration Benefit in Health Insurance Plan?

What is International Health Insurance? Meaning, Importance and Benefits

Key Difference between Health Insurance and Mediclaim Policy

5 Reasons to Buy Health Insurance in 2021

How Your Eating Habits Affect Your Health & How to Change Them

How to Choose a Right Health Insurance Plan?

Health Insurance Plan for Family

Choosing Health Insurance for Senior Citizens

A Millennial’s Guide to Buying Health Insurance

Is Cataract Surgery Covered under Health Insurance in India?

Heart and Cancer Insurance

Top Five Institutes for Free Cancer Treatments in India

All You Need To Know About No-Claim Bonus In Health Insurance

What Medical Expenses Can You Claim in Health Insurance Plans?

5 things to consider while renewing a health insurance policy

Why is Cardiac Care Plan a boon for Heart Patients?

Why You Must Review Your Health Insurance Plan Every Year

Why do Patients with Hypertension Need Health Insurance?

What is OPD Cover in Health Insurance?

Does Critical Illness Insurance Cover Stroke?

Why You Need to Know About the Critical Illness Plan?

Healthy Habits to Avoid Falling Sick During Monsoon

What are Health Insurance Premiums? How are they Calculated?

Guide on Fraudulent Health Insurance Claims in India

Health Insurance for Students Who Study Abroad

List of Critical Illnesses Covered in Health and Life Insurance Plans

Section 80D: Everything You Need to About Income Tax Deduction for Medical Expenditure

Rashtriya Swasthya Bima Yojana: Eligibility, Coverage, Benefits

Health Insurance for Brain Tumour: What You Should Know on Symptoms & Diagnosis of Brain Tumour

Health Insurance Coverage for HIV Patients

Everything You Need to Know About Accidental Insurance Policy

Factors to Consider While Choosing a Health Insurance Plan for Your Parents

How To Choose A Good Health Insurance Plan?

How Much Of Health Insurance Is Tax Deductible?

5 Reasons to Consider Investing in Health Care

Things to keep in mind before buying a health insurance plan for diabetics

Are You Covered for the Home Treatment Cost Under Your Health Insurance Policy?

5 Reasons to Own Both Health Insurance and Term Insurance

7 Things to Audit in Your Health Insurance Plan

How to Claim Tax Benefits on Medical Insurance Premium?

Stress and Heart Health: 4 Things You Should Know

Why Your Health Insurance Cover Could be Insufficient?

Why You Must Review Your Health Insurance Policy/ Plan Every Year?

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

What is Telemedicine? How to Seek Medical Treatment Remotely?

Why Opting for Short Term Health Insurance Plans is a Wise Idea?

How is Health Insurance Cost Calculated?

Health Insurance Coverage: Day Care Treatment Vs OPD Treatment

10 Effects of Fast Food on Your Body

What do Health Insurance Plans Cover?

What are the Documents Required for Buying a Health Insurance Plan?

What is the Difference Between a Mediclaim Policy, Health Insurance and Term Insurance?

Tips to Reduce Your Health Insurance Premium

10 Preventative Measures for Diabetes

How Is Your Health Insurance Premium Affected By Age?

How wellness benefits can help reduce your health insurance premium

What is BMI Calculator, and why is it Important?

Saving Tax on Your Health Insurance

6 Common Myths about Health Insurance

How to Switch to A Different Health Insurance Company?

Tax Benefits on Health Insurance Plans

What is Single Premium in Health Insurance?

7 Reason Why Should You Buy a Health Insurance Plan in Your 20s?

Seven Preventive Measures for Heart Related Illness

Why You Must Disclose Your Pre-Existing Conditions When You Buy Health Insurance

Buying Health Insurance with A Pre-Existing Illness? Things You Should Know

Health Insurance Plan for Heart – What you Should Know on Symptoms and Diagnosis of Heart-Related Disease?

Types of Health Insurance You Must Know About

Health Insurance Plans for a Pre Existing Condition

The Importance of a Health Insurance Claim Ratio

How Much Health Insurance Cover Should You Opt For?

Why Should You Opt for Cancer Insurance?

Benefits of Health Insurance You May Not Know About

Protect Your Family with Health Insurance Today

What is Disability Insurance?

How do I Choose a good Health Insurance Plan?

Health Insurance for Personal Accidents

What is the Right Age to Buy Health Insurance Policy?

Why You Must Disclose Your Pre-Existing Conditions While Buying Health Insurance?

Do Add-On For Health Insurance Policies Really Add Value?

Basics of Health Insurance

What Does Health Insurance Not Cover?

Everything You Need to Know About the Ayushman Bharat Health Insurance Scheme

What Is the Restoration Benefit in Health Insurance?

What is Health Insurance and Why do You Need it?

Health Insurance with or Without Medical Tests? Which is Better

Is Health Insurance the Same as Medical Insurance?

How to Transfer Your Health Insurance Cover Without Losing Benefits?

Critical Illness Insurance for Alzheimer's Disease

Which One is Better: Mediclaim or Health Insurance?

Which Health Insurance Plans Cover Your Family Members?

What is the Persistency Ratio and Why Does it Matter to the Health Insurance Sector?

Is Health Insurance Non-taxable?