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Health insurance safeguards against unexpected medical expenses, preventing financial strain during serious illnesses. Critical illness coverage within health insurance plans provides a lump sum upon diagnosis of specified conditions, covering medical costs but lacking a death benefit if the policyholder passes away due to the illness.
What Is A Survival Period?
Your lump-sum payment can go a long way towards covering the enormous costs of treating these conditions. Nevertheless, to avail yourself of the benefit, you must remember a few things. The Survival Period is one such requirement. The health insurance provider pays a predetermined amount if the insured person survives for a predetermined amount after receiving a diagnosis of a listed critical illness.
Let’s use an example to understand this better. Rajesh Sharma also bought a critical illness sum assured of INR 5 lakhs with his health insurance policy. The policy specifies a 30-day survival period. It was discovered that Rajesh had lung cancer two months later. Assuming that Rajesh’s diagnosis was made on January 11, 2022, he will only be eligible for the lump sum payment if he lives to be at least February 10, 2022. Should he pass away before then, there will be no payout.
Only serious illnesses covered by a health policy are eligible for the Survival Period in health insurance. This is primarily seen in critical illness plans offered by health insurers, which cover severe illnesses like cancer, renal failure, and many others.
Critical illness insurance covers treatment costs and a lump sum if you survive the required period following a diagnosis, typically 14 to 30 days. This safeguards against immediate payouts solely based on a diagnosis, ensuring the insurer’s liability is manageable. After living for the specified duration post-diagnosis, the policy provides full coverage.
What Role Does The Survival Period Play?
In family health insurance, the survival period is crucial. You can benefit faster if your health insurance has a shorter survival period. Therefore, before making a purchase, read all of the terms and conditions and try to understand the survival period clause.
Don’t Mix Up the Waiting Period With the Survival Period
Understanding the distinction between waiting and survival periods in health insurance is crucial. Critical illness policies have a survival period, requiring the policyholder to survive a specified duration after a diagnosis to qualify for benefits. In contrast, all health insurance plans have a waiting period, marking the time individuals must wait after policy purchase to be eligible for benefits, typically ranging from 30 days to 48 months. The waiting period is generally longer than the survival period. *
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When choosing critical illness coverage, please focus on the survival period as it determines how soon you can access benefits in an emergency. A shorter survival period reduces the psychological and financial impact of the illness. Read policy terms and compare plans to find the ideal fit for your needs. You can use a health insurance calculator to check on the costs of premiums to be paid.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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