What is the survival time in critical illness coverage?


The critical illness insurance plan covers the insured against serious illnesses such as heart attacks, cancer, etc. These plans help you provide a lump sum up to the sum insured limit to cover exorbitant medical costs for these critical illnesses.

However, getting the lump sum paid by the insurer is no easy task. You might not claim the lump sum under the policy unless you survive for a period of time after being diagnosed with a critical illness. Therefore, the survival period is a critical aspect of a critical illness plan.

Importance of the survival period: Medicare, especially critical illness plans, do not provide you with a death benefit. Therefore, you need to understand the concept of the survival period. Mayank Kale, CEO and Founder of Loop Health, said, “If the insured dies due to critical illness, the insurance company will not pay any amount immediately. In addition, they do not provide death benefits to heirs. In addition, paying a huge sum to all policyholders when diagnosed with critical illness will result in increased liability on the insurance company. Therefore, the companies added the survival period clause. “

So when you are diagnosed with a critical illness, the health insurer pays a lump sum under the critical illness insurance plan only if you survive for a certain period of time.

Kale added, “The survival period is the length of time an insured person must live after being diagnosed with a serious illness such as cancer, cardiovascular disease, etc. The survival period is an essential clause in a critical illness insurance policy since the insurance company will not pay the amount of coverage until the insured has survived this period. Depending on the plan, the survival period can range from 14 to 30 days. “

The survival period is not similar to the waiting period: The first main difference between the two is that while all health insurance policies include a waiting period, not all of them have a survival period. The sickness insurance waiting period will be valid regardless of the illness or illness of the policyholder. It is affected by pre-existing conditions and disease-specific waiting times. Survival time, however, only applies to people with serious, life-threatening illness. The length of the waiting period is usually longer than the survival period. Unlike the survival period, the waiting period is when an insured has to wait before their insurance policy becomes valid to make any claims.

What you should do: It would be better if you would rather go for a critical illness diet with a shorter survival period. Kale said choosing a critical insurance plan with a shorter survival time allows you to get the amount of policy coverage earlier and reduce the financial burden associated with a longer survival time. .

He said: “Critical illness insurance plans generally do not offer a return on premium option if the insured dies during the survival period.” A premium return option means the refund of the total premium paid by the insured before his premature death.

So, you should first compare the survival period of the plan and then buy it after using an experienced financial advisor.

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