Critical illness plans
Critical illness (CI) plans in India are specialized insurance products that provide a fixed lump-sum payout upon the diagnosis of a life-threatening disease. Unlike standard health insurance (indemnity-based), which reimburses actual hospital bills, CI plans pay the full sum insured regardless of medical costs, allowing the funds to be used for income replacement, lifestyle adjustments, or debt repayment.
Core Features and Comparison (2026)
| Feature | Critical Illness Plan | Standard Health Insurance |
|---|---|---|
| Payout Type | One-time lump sum on diagnosis | Reimbursement or cashless hospital bills |
| Usage | Flexible (treatment, EMIs, household costs) | Strictly for medical/hospitalization expenses |
| Waiting Period | Typically 90 days | Initial 30 days (plus PED waiting periods) |
| Survival Period | Usually 15–30 days post-diagnosis | Not applicable |
| Policy Status | Often terminates after full payout | Continues as long as premiums are paid |
Commonly Covered Illnesses
Policies typically cover between 10 to over 100 conditions. Common inclusions are:
Major Life-Threatening
Cancer of specified severity, first heart attack, and stroke.
Organ Failure
Kidney failure requiring dialysis and major organ/bone marrow transplants.
Neurological
Multiple sclerosis, permanent paralysis, and motor neuron disease.
Surgical
Coronary artery bypass graft (CABG) and aorta graft surgery.