How Does Critical Illness Cover Work For Self-Employed People?

A critical illness is a severe condition that can drastically disrupt a person’s daily existence. Such an illness significantly influences daily tasks like earning a living.

A critical illness insurance policy for independent contractors may provide a particular sum assured to the policyholder if they are diagnosed with one of the illnesses covered by the policy. Given the escalating cost of healthcare, such a condition could be expensive to treat. This is where a critical illness insurance policy can help with the financial burden of receiving medical care for the illness. This insurance is more flexible when compared to a standard health insurance policy.*

Key features and benefits of critical illness cover for a self-employed person: 

Critical illness insurance could be beneficial for people with a history of diseases like cancer or heart issues in their family. The main advantages and features of a critical illness plan are as follows:

  1. High Sum Assured: Depending on the plan you choose, the Critical Illness cover’s sum assured ranges from Rs. 1 lakh to Rs. 1 crore. If the disease is so serious that the policyholder cannot work, this sum could serve as income replacement.*
  2. Full payout: Upon the diagnosis of one of the aforementioned critical illnesses, the policy’s sum assured may be paid out in full.*
  3. 30+ diseases are covered: This kind of health insurance covers many critical illnesses. A critical illness insurance offers comprehensive protection against a variety of illnesses. It includes protection from accidental demise or incapacity in addition to disease coverage. It is quite similar to a term insurance plan. However, there are additional benefits.*
  4. Survival time: The typical survival period for insurance companies is 30 days. In order to claim the plan’s benefit, the person must be alive throughout this period of time following the critical illness diagnosis.
  5. Pre-existing conditions: Critical illness insurance generally excludes coverage for existing conditions. In the unfortunate event that you experience any of the listed illnesses, a critical illness plan can serve as one of your primary financial backup. Therefore, it is crucial to pick a plan that can offer the finest financial solution when necessary*. You may choose an ideal critical Illness plan with the aid of the list of recommendations below:
  • Sum Assured: Select the quantity of insurance you require. A critical illness health insurance plan may offer varying sum assured depending on your needs. As a result, you must know how much money you may need to survive if you get a severe sickness.
  • Dependents: Your choice of the sum assured for the plan should be influenced by the number of dependents. The more dependents you have, the larger your critical illness policy’s sum assured should be.
  • Age: A critical illness plan’s availability depends on the person’s age. Before purchasing this insurance plan, remember to verify the entry age.
  • Financial Position: The cost of the insurance coverage may increase as the sum assured increases. Before completing payment, consider your financial situation and your need to purchase this insurance.

A self-employed person may have more financial obligations than other types of employed people. It is wise to incorporate a critical illness plan in the health insurance portfolio to strengthen it because it may be quite helpful in replacing income. A health insurance premium calculator is a very valuable tool to help people determine their premium amount beforehand and allow them to arrange their budgets accordingly.


* 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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