Would you require another critical illness policy?


06 Jun 2023

Exploring the Need for Additional Critical Illness Coverage

A critical illness policy comes under the umbrella of health insurance, so you may wonder why you need to purchase critical illness coverage if you already have health insurance. Most health insurance plans do not offer critical illness coverage, while some offer very limited coverage. Take a look at the table below to get an idea of the death that critical illnesses cause in a year and the average cost of treatment


Estimated Deaths

Cost of treatment

Cardiovascular diseases


INR 3.5 lakhs

Lung diseases


INR 20 lakhs



INR 10 lakhs

Liver diseases


INR 18 lakhs

Kidney diseases


INR 4 lakhs

As you can see, most critical diseases require exorbitant expenses which your regular health plan or group health plan may not be able to cover. Also, keep in mind that a regular health plan would only cover the hospitalisation and a few days of pre and post-hospitalisation. Treatment of critical illnesses goes way beyond and can easily last a few years. In such a scenario, if you have a critical illness policy, it pays you a lump-sum amount when an enlisted critical illness is diagnosed. The amount received can be used for treatment or as an income replacement as well.

Benefits of critical illness policy

Here is the list of benefits that most critical illness policy offers to the insured:

  1. Medical expenses

Medical costs of treating life-threatening illnesses like cancer, heart stroke, kidney failure, brain surgery, etc., are escalating day by day. It becomes tough to manage the expenses, so purchasing a critical illness policy at an early age is advised. It provides you with comprehensive coverage for medical expenses of the treatment.

  1. Personal accident covers

In many critical illness policies, you also get the personal accident cover benefit. If the insured has an accident and/ or suffers permanent disability or death due to it, the insurance company offers financial aid to the family of the insured. This way, you can ensure financial stability for your family even in your absence.

  1. Financial stability amid health crisis

A critical illness brings a lot of mental trauma for the family of the patient as well. So, having a financial pillar in time of need is extremely essential so that the patient can receive the best medical facilities and focus on the treatment rather than on the payment of the bills. Not only this, but you can deal with income loss to help you meet your ongoing financial commitments.

  1. Tax benefits

Last, but not least, tax benefits are always an added benefit when it comes to health insurance. And you can claim up to INR 1.5 lakh under Section 80C. That’s not all; the premiums that you pay towards a critical illness policy let you avail of more tax deductions under Section 80D of the Income Tax Act. Individuals below 60 years of age can get up to INR 25,000 tax deductions, while senior citizens can avail of a tax deduction of up to INR 50,000.


Medical crises are unforeseen; therefore, it is prudent that you look for a comprehensive health insurance plan along with a critical illness policy. Health insurance ensures you fight and win against the financial shortcomings of the medical crisis. You can also pay a slightly extra premium to purchase various add-ons to extend the coverage of your existing health policy. So, you must consider buying critical illness insurance if you haven't so far.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.