The increasing rate of critical diseases in the country has led to an increasing number of people purchasing critical illness insurance plans in India.
These are the health insurance plans that offer financial coverage to the policyholders for the treatment of critical ailments like cancer, heart disease, and so on. But unlike other health insurance plans, they come with a “survival period.”
So, what exactly is it? Why does it matter in a health insurance plan? Let’s find out all the answers in the blog!
What is a Survival Period in Health Insurance?
Survival period refers to the period for which the policyholder must stay alive after being diagnosed with a critical disease such as cancer, kidney failure, cardiovascular problems, and so on. It is an important clause that comes under the terms and conditions of the majority of critical illness insurance policies in India.
Note that the company offers no financial coverage unless the policyholder survives this period. In simple words, if the insured dies before the completion of the survival period, the insurer will not pay any coverage amount. It results in the lapse of the policy.
Why Critical Illness Insurance Survival Period Matters?
The survival period of the critical illness insurance plan is an essential factor that needs to be considered before making any final decision.
Here is the deal: the longer the survival period is, the longer you will have to wait to get reimbursed for your treatment. It can impose a great deal of financial burden on yourself.
Therefore, it is recommended to choose a plan that comes with a minimum survival period. This will help you start your treatment early without struggling financially.
How Long is the Survival Period for Critical Illness?
Different health insurance plans have different survival periods. In the case of critical illness insurance schemes, this period varies from 14 to 30 days, depending on the plan and provider.
A policyholder should survive for at least 14 to 30 days after being diagnosed with a critical disease.
What if You Don’t Survive the Required Survival Period of Your Insurance?
As we have discussed, you need to live through the survival period of your medical health insurance policy in order to gain coverage. But what happens if a policyholder dies before completing the survival period? Is your premium value returned?
Again, no.
In a majority of cases, the premium amount is not returned after the demise of the policyholder during the survival period in health insurance. In fact, there is no refund policy for life insurance policies as well. So, if the insured dies before the survival period, their policies lapse.
Factors Affecting Survival Period in Health Insurance
The terms and length of critical illness insurance survival period depend on many factors. Some of them are as follows:
- Age and Health: The age and health of the policyholder is the biggest factor that influences the length of survival period. If the insured is younger and in good health, his survival period is likely to be shorter as compared to a senior citizen or a person with severe health issues.
- Type of Policy: Many healthcare insurance plans come with a survival period. However, the survival period for critical illness insurance is quite strict and longer than other life insurance schemes.
- Underwriting Considerations: Insurance companies assess the risk factors before issuing the insurance policies. These include evaluating the medical history, current health condition, lifestyle, etc. If the insurer finds out that the applicant has a history of severe health issues, he might assign a longer survival period.
- Risk Management: The idea behind imposing a survival period is to prevent false claims and fraud by the policyholders. Simply put, it helps avoid situations where a person purchases a health insurance policy just to claim it shortly to enjoy the reimbursement. It basically helps insurance companies to maintain their financial health and stability.
Final Words
The survival period of a health care insurance policy can be defined as a period for which a policyholder has to survive in order to enjoy the benefits of the policy.
If he or she dies before this imposed period, the insurance company is not entitled to offer any coverage.
We have discussed everything you need to know about the critical illness insurance survival period. We hope it helps you in making an intelligent decision.
