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How Critical Illness Insurance Can Protect Your Finances at Critical Times

Posted by amrinaalshaikh on June 27th, 2020

How Critical Illness Insurance Can Protect Your Finances at Critical Times

Medical costs keep spiraling at an alarming rate. As there are no government regulations for pricing, hospitals charge exorbitant rates and throw in unwanted tests and fees for consultants who may have not even stepped anywhere near your hospital bedside. Many hospitals inflate the bill when they know that an insurance company covers the patient. Unfortunately, these unethical practices are followed by many hospitals. 

No Critical Illness Cover in India Can Cripple You Financially

The situation gets grimmer when the patient is admitted for a critical illness. In this case, you may have to be admitted to an ICU ward for special treatment. You will have to pay five-star rates for the room, equipment, nursing care, medical supplies, tests, consultants fees, and other miscellaneous charges. These all add up to a small fortune for the common man. 

Be Prepared for the Worst

Apart from the mental agony for the patient and the immediate family, there is also the worry of a hefty bill at the end of the hospitalization. Some families have to borrow money or take loans against their property and are stuck this burden for the rest of their lives.

Is Cashless Really Cashless?

You must be aware that although the hospitals have a tie-up with the insurance for cashless treatment. This is not what always happens when you admit a person with an insurance cover for critical illness cover in India. Most hospitals ask you to settle the bill and advises the patient to claim from the insurer. This defeats the very purpose of buying a health insurance policy with critical illness cover.

What is Critical Illness Cover?

This policy covers life-threatening illnesses like kidney failure, cardiac problems, cancer, and other illnesses. Recently, many Insurance companies have started to coved COVID-19 by paying an additional premium. Since the illness is spreading at a fast pace, it is advisable to opt for this. 

The insured person is compensated for expenses incurred for the treatment of the illness. The amounts disbursed are as per the terms and conditions mentioned in the policy document. 


Health Insurance plans with Critical Illness cover ensures that you do not fall into a debt trap. Your family lifetime savings should not be eroded in a flash. Insurance companies offer various products to cover critical illness. These critical illness products can be part of a policy or can be purchased as a standalone product. Also, check the claim settlement ratio of the company before signing on the dotted line.


1. I have a life insurance cover. Can I add critical illness cover to this policy?

Yes. Some life insurers do offer critical illness cover as a rider. A Rider is an additional provision in the policy that benefits the insured. A premium for the cover is required. The insurance company calculates the premium amount. 

2. Can I return the policy if the terms and conditions do meet my needs

All insurance policies have a no-questions-asked return policy. If you are not happy with any insurance products, you can return the policy within fifteen days from receiving the policy. 

3. Is there an insurance regulatory body where a policyholder can take their grievances?

The IRDA is the regulatory body located in Delhi. The Ombudsman is authorized to settle any dispute between the insured and the insurance company. If you are not satisfied, you can approach any court of law. 

4. What is the claim settlement ratio?

Claim settlement ratio is the number of claims settlement resolved against the number of claims the insurance company received.

Also See: Critical Illness, Illness Cover, Insurance Company, Settlement Ratio, Policy, Insurance, Illness

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