8 Factors to consider before choosing a Critical Illness Insurance

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

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


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.

8 Factors to consider before choosing a Critical Illness Insurance

Covered illnesses, definitions, exclusions, sub-limits, premium, renewal, claim settlement ratio, and survival period are the 8 factors to consider before choosing a critical illness plan.

  • Dec 19, 2018

Before understanding critical illness insurance, knowing the meaning of critical illness will be beneficial. Critical illness is a serious medical condition with incapacitating effects on your normal lifestyle. Additionally, you may require spending a huge amount for treating a critical illness. In some cases, you may be unable to work resulting in a loss of regular income.

The number of people suffering from critical illnesses is on the rise. One important factor leading to this increase is the stressful lifestyle and unhealthy habits. The financial impact of being diagnosed with a critical illness may be huge and your regular health insurance policy may not be sufficient to cover the same.

To overcome this limitation, you require a critical illness insurance India plan. When you acquire such insurance, you receive a lump sum payout in case you are diagnosed with any of the illnesses covered under the policy. The money may be used to meet your treatment expenses or to pay for your regular monthly costs. This reduces the financial burden while you are being treated.

Need for critical illness insurance coverage

A life insurance plan pays death benefits to the beneficiaries in case of the policyholder’s demise during the policy duration. Health insurance is an indemnity plan, which covers the cost of hospitalization and some other expenses. Both these may not be appropriate to cover the financial impact of a critical illness.

In case of a critical illness, the benefits of a standard health insurance policy and life insurance plan are not available. Moreover, a critical illness may leave you incapacitated, which means you may not be able to work resulting in income loss.

Critical illness insurance India plans are also known as fixed benefit policies. This means if you are diagnosed with any of the covered illnesses, the insurance company pays the policy benefits irrespective of the treatment costs and other related expenses. Some of the commonly covered critical illnesses include cancer, liver disease, kidney failure, stroke, multiple sclerosis, heart attack, and many more.

8 Important factor to consider to choose the best critical illness plan

Most of the insurance companies offer critical illness policies. A critical illness insurance comparison table online will help you make the right choice. Here are eight factors you must consider:

Covered illnesses

If a plan covers more illnesses, the premium will also be higher. Therefore, you need to clearly understand the inclusions and exclusions before making your decision.


As a common man, you may not understand complex medical terms. It is recommended you take help of your family doctor to understand the terms and conditions in the policy document.


Most critical illness insurance India plans do not cover pre-existing conditions during the waiting period. Such coverage may be available for a higher premium. Moreover, you must check the medical conditions that are excluded from the policy.


Insurance companies often levy sub-limits for different types of medical conditions. The insurer will pay this amount in case you are diagnosed with the specific illness. The sum assured reduces by the sub-limit amount.


A comprehensive coverage is more expensive and it is recommended you understand your personal needs and health conditions to make the accurate choice. Moreover, as you grow older, the premium increases.


When you are looking for critical illness coverage, it is important to opt for a policy that offers life-long renewal. This ensures that you have coverage as you age because the probability of suffering from such conditions increases, as you grow older.

Claim settlement ratio

Opting for an insurer with a higher settlement ratio is crucial for your peace of mind. This increases the possibility of your claim being settled in case the need arises.

Survival period

Several insurance policies include a survival period clause. According to this clause, you need to survive for a specific period after diagnosis to receive the benefits under the critical illness policy. The survival period is different for various diseases and knowing these beforehand is important.

Having understood the importance of a critical illness policy, you may check online for a critical illness insurance comparison table. Such a table compares various policies, their terms and conditions, and inclusions and exclusions on a single page, which makes it easier for you to make a decision.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Can I Extend the Tenure of My Term Insurance Plan?

Why Married People Should Buy Term Insurance Under MWP Act?

How Much Term Life Insurance Cover Do I Need?

Why Should You Buy Term Insurance in 2022?

Steps on How to Buy Term Insurance Online

Do Beneficiaries Pay Taxes on Term Insurance?

4 Methods to Calculate How Much Term Insurance You Need

How Much Cover Should I Take In A Term Plan?

Why is it important to buy term insurance plan?

Is It Good To Buy A Term Insurance Plan In 2022?

Should you buy a Renewable Term Life Policy?

Different Types of Premiums in Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

Tax Benefits of Term Insurance in India

Should Youngsters, Working Couples Buy Term Insurance Plans?

Do I Need to Give a Medical Test for Term Insurance in India?

Understanding Term Insurance Riders

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

What All Documents Required For Term Insurance In India?

Why Should New Parents Buy Term Life Insurance?

Busting Myths and Facts About Term Insurance Policies

All about Online Income Tax Calculator

Term Insurance Calculator - Everything You Need To Know

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Online vs Offline Term Insurance: Which Is The Better Option To Buy

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Term Insurance with Critical Illness

Do You Need Term Insurance Cover After Retirement?

Cost of Term Insurance Likely to Increase Soon

How Does Term Life Insurance Work? Learn the Benefits

Eligibility Criteria for Buying Term Insurance in India

Insurance Policy for Housewife In India

How Does A Term Life Insurance Work in India?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Why Spending Time with Friends is Essential for Your Mental Health?

Why Buy Term Insurance Plan With a High Cover?

Why should single women purchase term life insurance?

Is There Any Tax Benefit on Term Insurance?

Term Insurance Basics You Should Know

भारत में जीवन बीमा कितने प्रकार के होते हैं?

5 Reasons to Buy Term Insurance When You are in Your 30s

10 Ways to Mentally Refresh After a Stressful Day

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

What is Term Insurance? Term Plan Meaning and Definition

3 Things to Consider When Buying Term Insurance, If You are Single

Make Your Online Term Plan Your Family's Monthly Pay Cheque

What are incremental term insurance plans?

How to Surrender Term Life Insurance When You Have No Liabilities?

Is ₹1 Crore Term Insurance Good Enough Cover?

Can Senior Citizens Avail Term Insurance?

Protection for your family

Why Premium Amount for Term Insurance is So Low?

Make Your Online Term Plan Your Familys Monthly Payout

How to Compare Term Insurance Online

4 Reasons Why You Need Critical Illness Cover

Is Group Term Life Insurance Provided By Employer Sufficient?

5 Term Insurance Benefits for Single Women

6 Types of Death not covered in Term Insurance Plan

What is Insurance Premium - A Detailed Guide

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Everything About Claim Settlement Ratio for Term Insurance

Reasons You Need Term Insurance Plan as a Self-Employed Person

Increasing Term Insurance and Riders

How To Change The Nominee in Term Insurance?

Insuring Against Disability With Disability Insurance Rider

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Why Should You Add a Rider to a Term Insurance Plan?

10-Year Term Life Insurance Policy - Explained in Detail

How To Calculate The Amount Of Term Life Insurance You Need?

Form 16, Form 16A, and Form 16B?

9 Point Guide on how to File Income Tax Return Online

What Are Insurance Riders and How to Choose Them in a Term Plan?

Planning For Son or Daughter's Wedding

8 Benefits of Term Insurance You Should Know

Does Term Insurance Cover Accidental Death?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

8 Things To Do After Buying Term Insurance

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

What Happens if you Hide Facts in your Term Insurance?

Term Plan with Spouse Cover

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Difference Between Term Insurance and Endowment Plan

Why Buy Term Insurance Even at Rising Rates?

Term Insurance Age Limit – Term Plan for All Age Groups

Calculating Term Insurance Premium

Term Life Insurance Plan for Smokers vs Non-Smokers

All About Term Insurance Inbuilt Coverage

Choosing Riders for Insurance Plans

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

What are the Documents Required for Term Insurance Plan?

While Buying Term Insurance Compare Features, Not Just Premiums

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Zero Cost Term Insurance Plan: What is & Should you buy it?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Top 3 Reasons Why You Should Buy A Term Plan Now

Can I Make Changes to My Term Insurance Policy Post Purchase?

Planning For Children's Future

What Should You opt for - Limited or Premium Pay?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Individual Life Insurance vs. Group Term Life Insurance

Insuring Protection Against Death With Death Insurance Rider

Can You Increase Your Term Insurance Cover?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Gift Your Father A Term Insurance Plan This Father's Day

Tips to Choose the Right Term Period for Term Insurance Plan

How to Ensure That Your Term Insurance Claims Are Never Rejected?

12 Types of Death not covered in Term Insurance Plans

How To Choose the Right Term Insurance Plan?

What Is the Correct Age to Buy Term Insurance?

What Is a Renewable Term Insurance Policy?

Importance of Term Insurance at Every Stage of Your Life

5 Benefits of Early Retirement Planning

Should You Buy a Term Plan After 40?

Which Death Type Does Your Term Plan Not Cover?

Term Insurance With Riders In India

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

How do I Calculate My Term Insurance Premium

What is a short term insurance policy?

Can I Get Term Insurance on Behalf of My Spouse?

Term Plans are Definitely Cheaper than You Think!

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance: Smokers vs Non-Smokers

How to Identify Term Insurance According to Your Needs?

Why You Must Include In Your Financial Planning?

Endowment Plans vs Term Plans: Understanding the difference

Is term Insurance Needed for People With No Dependents?

Why Should You Not Take A Term Plan Without Medical Test in India?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

9 Most Frequently Asked Questions on Term Insurance

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Different Types of Protection Plans

6 Reasons That Make Term Insurance a Must Buy

Buying A Term Insurance Plan? Take These Factors into Account

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

What Are the Best Term Insurance Plans for Planning Retirement?

4 Things To Expect From Your Term Insurance Plan in India

What Types of Deaths Are Covered in a Term Insurance Plan?

Why Term Plan Should Be The First Step To Securing Your Future?

Advantages & Disadvantages of Term Insurance in India

All you need to Know about Term Insurance Plans for housewives

Why 1 Cr Term Plan Is Necessary For Family?

Why does every working women need life insurance?

Know How to Invest at Every Age for Larger Returns

Insuring yourself against Ill Health with a Critical Illness Rider

5 Things To Consider While Buying Term Insurance Plan

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

What is a term insurance plan with a return of premium, and how does it work?

Side Effects of Covid-19 Booster Doses

Is Life Insurance Investment Worthy Enough

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

How To Choose the Right Sum Assured Under a Term Plan?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Can I Buy Term Insurance for a COVID-19 Patient?

Why Term Insurance Is Important in times of COVID-19?

Why Term Insurance Is Better Than ULIP?

Is Term Life Insurance Plan an Investment or Expense?

What is Critical Illness Policy?

Should you have more than one nominee in your term insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

What Should Be The Duration Of Your Term Plan in India?

How Much Term Life Insurance Cover Do I Need in India?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

9 Ways to Help Family Members in Financial Trouble

Is a Term Insurance Policy Portable?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Do term insurance policy have a waiting period after buying?

Comparing Term Plans – What Should You Look Out For

How Not To Get Your Term Insurance Claim Rejected

Can Term Insurance Plans Be Purchased As A Gift?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Term Insurance Plans and Policies for Smokers

Advantages of Buying Term Insurance in Your 50s