How well can critical illness and personal accident policies protect you?

critical illness insurance policyFor a nominal premium, a Pure Term Insurance policy protects the family of the Life Assured from financial crisis in case the Life Assured is no more. There are two more policies which covers the financial risks an individual or a family faces in case of an accident or critical illness, wherein, the cost involved is not only very high but will be spread over a longer period.

Personal Accident Policies: Personal accident policies are issued by General Insurance companies for a period of one year and the premiums are common for all age groups. There will be NO Medical exam for these policies since only Death or Disablement (permanent or partial) are covered. In most of the accidents, the individual involved either suffers a minor or a major disablement such as a fracture of a limb or even a spinal injury, which forces them to stay at home for a period of 3 months to 6 months. In severe accidents, this may even go up to one year – during which period the individual suffers loss of income in addition to the regular medical expenses. A good personal accident policy for a sum insured of Rs.25 lakhs and above, comes to the rescue in such a situation.

A sample illustration of personal accident policy with approx. premiums:

Type of Coverage
Sum Insured
Death due to accident or
Permanent Total Disablement
Rs. 25 lakhsRs. 50 lakhs
Temporary Total DisablementRs.5000 per week up to 50 weeksRs.10,000 per week up to 50 weeks
Modification of Home or Vehicle due to accident
10% of Sum Insured subject to a maximum of Rs.1 lakh
Medical Expenses in case of accident
Will be reimbursed up to Rs.1 lakh if the claim is accepted under any category
Eligibility10 times of Annual Income
Approx. premium - Occupation 1Rs. 2,900 per yearRs. 5,800 per year
Approx. premium - Occupation 2Rs. 4,400 per yearRs. 8,600 per year

Critical Illness Policies:

Critical Illness policies will pay the insured person the sum insured as a Lump sum amount for the identified critical illness, Medical events or surgical procedures. Some of them are listed below:

  • Kidney failure requiring regular dialysis
  • Multiple sclerosis with persisting symptoms
  • First Heart attack, Cancer, COMA and End stage liver disease of specified severity
  • Major organ/bone marrow transplant
  •  Open Heart replacement or repair of Heart valve
  • Pulmonary artery graft surgery, Major burns, Open chest CABG & Aorta Graft surgery

Sample Premiums for Critical Illness Policies:

Age5 lakhs10 lakhs15 lakhs
36-40323064619691
41-4553371067416011
46-5098321966329495

The coverage varies with the Insurance Company and with the survival period (60 days, 90 days or 6 months from the occurrence of the event or accident).

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