Here’s What You Need to Know about Survival Period in Health Insurance

Posted on: May 19, 2022 | | Written by:

Here’s What You Need to Know about Survival Period in Health Insurance

The time period for which an insured person must survive after being diagnosed with a critical illness like cancer etc, is known as the survival period. Usually, under a critical illness insurance policy there is a condition that an insurance company does not pay the coverage amount unless the insured survives this period.

In case you are diagnosed with a critical illness, your health insurance provider pays a lump sum amount under your critical illness insurance policy to take care of the medical expenses during the treatment. Since paying a lump sum amount to all policyholders when they get diagnosed with a critical disease will create a greater liability on the insurer. Hence, most insurance companies have included the survival clause under all critical illness plans and pay the sum insured only if you survive the period.

What happens to thepremium if a person does not survive the survival period?

In majority critical illness insurance plans, the insurerdoes not offer a return on premium option, if you expire during the survival period. In simple terms, a return on premium refers to the refund of the total premium paid by the policyholder before his/her untimely death. This feature is available under life insurance plans.However, in case of health insurance, if the policyholder dies during the survival period no return on the premium is provided to the nominee or their family members.

How important is it to consider survival period when buying a critical illness insurance policy?

It is very important to be aware about the survival period of a critical illness insurance plan before buying. Ideally,buy a critical illness plan that comes with a shorter survival period. This will help you to get the coverage amount under the policy faster and reduce your financial stress that comes with a longer survival period. You need to compare and research about various critical illness plans online and then decide which one is the best for you.

What is the difference between survival period and waiting period?

These two concepts are very different. A survival period is a duration that you need to survive after you have been diagnosed with a critical disease. On the other hand, the waiting period is the period that you need to wait out in order to raise an insurance claim etc.

Usually, a survival period is generally shorter than a waiting period. For example, a critical illness insurance policy may come with a waiting period of 90 days and a survival period of 30 days. Also, a survival period isonlyincluded under a critical illness insurance policy and a waiting period is present in all types of health insurance plans, including critical illness insurance plans. Moreover, a survival period is applicable after a person gets diagnosed with a critical illness but a waiting period gets activated as soon as the policy is purchased.

Conclusion

The survival period is an important condition of a critical illness insurance policy. Unless you survive this period, you are not eligible to obtain the lump sum payment under your policy. Hence, you need to check the survival period of a critical illness plan before buying it and shouldchoose a plan with a shorter survival period.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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