What is The Survival Period In a Critical Illness Health Insurance?

As lifestyles are changing, so are the ailments that are affecting people at large. Among the different illnesses that are gripping people, critical ailments are typically more concerning. When a serious illness such as cancer goes undiagnosed, it often results in a critical illness. However, that isn’t always the case. The reason that makes critical illness concerning is the fatality rate associated with different types of critical ailments.
Hence, the right treatment and early diagnosis are crucial when it comes to critical ailments. A critical illness health insurance policy is an effective way to tackle the sky-high treatment costs for these kinds of critical ailments. These treatments may result in even a debt trap if not planned for. As medical emergencies are unexpected, treatment cannot always be planned. Thus, the lump sum payout in a critical illness plan helps tackle the treatment cost and ensures that the right treatment is available. Among the different terms to know about when buying a critical illness plan, the survival period is of particular importance. Let’s look at the meaning and significance of the survival period in a critical illness policy.

Understanding Survival Period in Critical Illness Policy

The survival period in a critical illness cover refers to the period during which the policyholder must be alive after the illness is diagnosed. The insurer does not pay any compensation till the end of the survival period and makes a lump sum payout at its end. Generally, the survival period ranges from 14 days to 30 days depending on the insurance company’s terms and the type of ailment. Unlike life insurance plans, a critical illness health cover does not pay any death benefit to the dependents or nominees of the policyholder. Instead, the insurer pays the specified amount, which is usually the entire sum assured, on diagnosis but at the end of the survival period. Thus, the policyholders can seek the necessary treatment and take advantage of critical illness insurance. * Standard T&C Apply

Do You Get a Refund If Survival Period Isn’t Met?

No, health insurance policies do not offer a return on premium if the policyholder does not survive the specified survival period. Return of premium is where the insurer refunds the premium in case of an unfortunate demise of the policyholder. However, this feature is available when buying life insurance covers. *

Read More: Features & Benefits of Critical Illness Insurance Plans in India

Is the Survival Period Important in Critical Illness Insurance?

Yes, it is important to account for the tenure of the survival period. A shorter period helps by ensuring a quicker payout by the insurance company whereas a longer survival period will increase the financial burden. Faster treatment of the ailment is possible with a shorter survival period eliminating the burden on the policyholder’s financial resources. *

Is the Waiting Period and Survival Period the Same?

No, the waiting period is the duration that the policyholder must complete before the insurance cover is activated. On the other hand, the survival period starts after the diagnosis of the specified critical illness. * * Standard T&C Apply

How to Choose the Right Survival Period in Health Insurance

The survival period in health insurance, particularly for critical illness coverage, refers to the minimum number of days a policyholder must survive after being diagnosed with a covered critical illness before they can make a claim. Typically, this period ranges from 14 to 30 days, depending on the insurer and plan.

When choosing the right survival period, consider the following factors:

• Health Status: If you are already suffering from a pre-existing condition, opting for a shorter survival period might be beneficial, but it could also increase premiums.
• Budget: Shorter survival periods often come with higher premiums. If you're on a budget, you may want to balance the premium with the coverage offered.
• Risk Tolerance: If you're concerned about being diagnosed with a critical illness soon, a shorter survival period might provide peace of mind, while a longer one could lower your premiums.

Bajaj Allianz General Insurance Company’s Critical Illness plan offers flexibility in coverage and ensures peace of mind with reliable claim processes, including a survival period before claims are made, to protect you against unforeseen health risks.

Read More: Health Insurance Claim Settlement Ratio

The Bottom Line

To conclude, the survival period is an essential point to keep in mind when buying a critical illness policy. The different factors impacting the critical illness policy’s premium can be understood by using a health insurance premium calculator.

FAQs

Is the survival period the same as the waiting period?

No, the survival period and waiting period are different. The waiting period refers to the time before specific coverage (such as critical illness) kicks in after purchasing the policy, while the survival period is the minimum duration you must survive after being diagnosed with an illness to receive benefits.

Can the survival period be customized or reduced?

In most cases, the survival period for critical illness coverage cannot be customized or reduced as it is set by the insurer. However, it may vary depending on the policy and insurance provider

Does Bajaj Allianz Critical Illness Insurance have a survival period?

Yes, Bajaj Allianz Critical Illness Insurance includes a survival period clause, which means the insured must survive for a specific period (usually 30 days) after diagnosis before they can claim the benefits, ensuring clarity in coverage.

How does the survival period affect claim eligibility?

The survival period affects claim eligibility by determining when the insured can receive the payout. If the insured does not survive beyond the stipulated period after being diagnosed with a covered illness, the claim will not be paid out.

How long is the typical survival period in health insurance plans?

The typical survival period in health insurance plans, especially for critical illness coverage, ranges from 14 to 30 days. The exact period varies by insurance provider and policy.

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*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.