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Critical Illness Insurance Vs Standalone Policy

Posted by : on | Sep 09,2015

Many people overlook the importance of covering critical illnesses while availing health insurance plans. In addition to the physical pain and mental agony, an illness can result in incurring huge expenses that may lead to disastrous financial outcomes. Any critical disease can create havoc in your future plans and erode your current savings significantly.

You must not overlook the fact that certain kinds of illnesses can be fatal and impact even the fittest individuals. While there is no debating the fact that health insurance is vital, providing sufficient support in case of critical illness is equally important. Critical insurance plans offer living benefits when the insured survives any life-threatening illness covered under the plan. Most of these are available with survival clause implying the insured can file a claim within a specific period after surviving the illness.

Understanding riders

Most people today understand the need and importance of procuring both health and life insurance policy but overlook the possibility of ailments that may temporarily or permanently disable them. This can be covered through critical illness plans.

A critical illness insurance plan can be a standalone policy or combined with riders included in your current health plan. Most of the terms and conditions under both the options are similar and the choice between the two will primarily depend on the personal requirements of every individual.

Standalone policies offer greater versatility while choosing the sum assured with larger coverage in comparison to riders. Additionally, the limit on the sum assured under riders is the same as the basic policy. The two policies also differ in their pricing. Standalone policies usually entail higher premiums because you are able to insure yourself for a larger amount.

Know the differences


Standalone Policy

Critical illness cover with riders

Coverage amount

Greater flexibility for determining sum assured

Critical illness rider cannot be more than the base plan


Provides higher number of cover for critical illness

Limited number of sicknesses are covered

Premium amount

Renewed every 5 years, which means premium varies according to the insured’s health condition and age

Premium remains constant during the term of the base policy making it a cheaper alternative


Must be renewed at the end of every 5 years

Longer duration as per the base health plan

Medical examination

Complete medical checkup is necessary

No medical test if procured from the existing service provider


Are you still not sure?

Having understood the importance of critical illness cover and the differences between the two options, you may still be unsure about which plan to avail. The best way to determine the best life insurance plan and health plan along with critical illness cover is to consider your health condition, medical history, and personal needs before making a decision.