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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

8 Factors to consider before choosing a Critical Illness Insurance

8 Factors to consider before choosing a Critical Illness Insurance
  • 19th Dec 2018 |
  • 3,677

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Make Your Online Term Plan Your Familys Monthly Payout

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Insurance with Critical Illness

Term Insurance Age Limit – Term Plan for All Age Groups

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

Insurance Policy for Housewife In India

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

Why is it important to buy term insurance plan?

Insuring Protection Against Death With Death Insurance Rider

Term Insurance Basics You Should Know

4 Reasons Why You Need Critical Illness Cover

5 Term Insurance Benefits for Single Women

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

Can I Extend the Tenure of My Term Insurance Plan?

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

What Are the Best Term Insurance Plans for Planning Retirement?

9 Most Frequently Asked Questions on Term Insurance

What Happens if you Hide Facts in your Term Insurance?

Choosing Riders for Insurance Plans

Is Group Term Life Insurance Provided By Employer Sufficient?

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

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

How To Change The Nominee in Term Insurance?

Eligibility Criteria for Buying Term Insurance in India

Insuring yourself against Ill Health with a Critical Illness Rider

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

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

Is Term Life Insurance Plan an Investment or Expense?

6 Types of Death not covered in Term Insurance Plan

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

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

Term Insurance With Riders In India

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

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

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

8 Things To Do After Buying Term Insurance

What are the Documents Required for Term Insurance Plan?

Why should single women purchase term life insurance?

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

Comparing Term Plans – What Should You Look Out For

How Much Term Insurance Do I Need

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

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

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

Insuring Against Disability With Disability Insurance Rider

While Buying Term Insurance Compare Features, Not Just Premiums

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

Can I Get Term Insurance on Behalf of My Spouse?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Increasing Term Insurance and Riders

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

How Does A Term Life Insurance Work in India?

Cost of Term Insurance Likely to Increase Soon

How Not To Get Your Term Insurance Claim Rejected

Insuring Against Accidents with an Accidental Death Insurance Rider

How Much Cover Should I Take In A Term Plan?

Term Insurance – Why You Must Include In Your Financial Planning?

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

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

Know How to Invest at Every Age for Larger Returns

Individual Life Insurance vs. Group Term Life Insurance

9 Ways to Help Family Members in Financial Trouble

Planning For Son or Daughter's Wedding

10 Ways to Mentally Refresh After a Stressful Day

Do Beneficiaries Pay Taxes on Term Insurance?

Can Term Insurance Plans Be Purchased As A Gift?

Can You Increase Your Term Insurance Cover?

Term Insurance Calculator - Everythng You Need To Know

Importance of Term Insurance at Every Stage of Your Life

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

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance: Smokers vs Non-Smokers

What All Documents Required For Term Insurance In India?

Best Investment Plans for Children - Secure Your Child's Future

Is Life Insurance Investment Worthy Enough

Is term Insurance Needed for People With No Dependents?

How to Compare Term Insurance Online

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

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

What is a short term insurance policy?

Term Life Insurance Plan for Smokers vs Non-Smokers

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

All About Term Insurance Inbuilt Coverage

8 Types of Death not covered in Term Insurance Plan

Why Buy Term Insurance Even at Rising Rates?

Everything About Claim Settlement Ratio for Term Insurance

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

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

4 Things To Expect From Your Term Insurance Plan in India

All you need to Know about Term Insurance Plans for Housewives

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

What Is a Renewable Term Insurance Policy?

5 Things To Consider While Buying Term Insurance Plan

Busting Myths and Facts About Term Insurance Policies

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

Can Senior Citizens Avail Term Insurance?

Why 1 Cr Term Plan Is Necessary For Family?

4 Methods to Calculate How Much Term Insurance You Need

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

Calculating Term Insurance Premium

Different Types of Protection Plans

Tax Benefits of Term Insurance in India

Top 3 Reasons Why You Should Buy A Term Plan Now

Is There Any Tax Benefit on Term Insurance?

Why Term Insurance Is Better Than ULIP?

Difference Between Term Insurance vs Life Insurance

Should You Have Multiple Term Life Insurance Policies?

Why Premium Amount for Term Insurance is So Low?

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

How To Choose the Right Term Insurance Plan?

Steps on How to Buy Term Insurance Online

Different Types of Premium in Term Insurance

Why does every working woman need life insurance?

Advantages of Buying Term Insurance in Your 50s

Understanding Term Insurance Riders

What are incremental term insurance plans?

Why Should You Buy Term Insurance in 2022?

Planning For Children's Future

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

Do You Need Term Insurance Cover After Retirement?

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

Why Buy Term Insurance Plan With a High Cover?

Should You Buy a Term Plan After 40?

How Does Term Life Insurance Work? Learn the Benefits

5 Benefits of Early Retirement Planning

Endowment Plans vs Term Plans: Understanding the difference

What is Insurance Premium - A Detailed Guide

What is Critical Illness Policy

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

Why Should New Parents Buy Term Life Insurance?

How to Identify Term Insurance According to Your Needs?

Side Effects of Covid-19 Booster Doses

8 Benefits of Term Insurance You Should Know

Tips to Choose the Right Term Period for Term Insurance Plan

Protection for your family

Is a Term Insurance Policy Portable?

Buying A Term Insurance Plan? Take These Factors into Account

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

Is ₹1 Crore Term Insurance Good Enough Cover?

6 Reasons That Make Term Insurance a Must Buy

10-Year Term Life Insurance Policy - Explained in Detail

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

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

What Is the Correct Age to Buy Term Insurance?

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

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

What Should You opt for - Limited or Premium Pay?

Term Insurance Plans and Policies for Smokers

Does Term Insurance Cover Accidental Death?

Term Plan with Spouse Cover

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

Which Death Type Does Your Term Plan Not Cover?

What is Term Insurance - A Complete Guide

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Term Plans are Definitely Cheaper than You Think!

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

Advantages & Disadvantages of Term Insurance in India