Health insurance OR Personal accident + CI policy

POSTED BY Gaurav ON April 23, 2012 1:12 am COMMENTS (7)

I am 22 years old and have just started working. I have a term policy from Aegon Religare with CI rider and Personal accident rider.

With the rising costs for hospitalization nowadays, I felt that I need a health insurance. Then I realized that the probablity of me having a critical illness in coming years is very less. Also, I learnt about cases where the health insurance companies abruptly increase premium rates suddenly. So I decided to opt for only personal accident policy as I could meet with an accident anytime. Further, I also learnt about the Critical Illness general insurance which gives lumpsum when some critical illness is diagnosed.

But I am pretty confused with all this as there are a lot of products in the market. I tried surveying most but it is very confusing and unclear in my mind with respect to future prospects. Am I right with my understanding? Please correct me if needed.

Further, my mother is diagnosed with diabetes and my father is also expected to in near future. They are 46 and 54 years old respectively. I want to be prepared for any medical emergencies related to my parents in near future. Please suggest options for the same.

I also thought of health policies for my parents but the premiums go on increasing every year and existing illnesses are covered only after 4 years. Also, I cannot afford all of this together. It restricts me a lot in other investments towards equity, shares, etc.

Please help. Thanks in advance.


7 replies on this article “Health insurance OR Personal accident + CI policy”

  1. Dear Gaurav, if your job requires a lot of travelling by road/rail/air, a personal accident plan is a must for you. Regarding CI policy, if your family has a history of some CIs, it’s advisable to go for a cover.



  2. Gaurav Sakhardande says:

    Hi Ramesh and BanyanFA,

    Thanks for your time spent to give such timely and fruitful answers.

    Could you please provide with a real life example with :
    scenario 1 – life term + normal health policy
    scenario 2 – life term + accidental policy + CI policy

  3. Gaurav Sakhardande says:

    Could you also suggest some good options for Road accident, CI and health insurance policies? I have heard about Oriental Insurance’s Nagrik Suraksha road accident policy from Mr.Manish but the people at their offices in my city are not very helpful.

  4. BanyanFA says:

    Hi Gaurav,
    I can help you in clearing doubts about CI / Accident cover.

    A normal term insurance would provide a person’s dependents a lumpsum in case of the death of the insured. However, if a person meets with an accident which makes him permanently disabled and preventing him to raise a living, the insurance company will not pay as the person is still living.

    In such a case, this person is left like a vegetable and makes a dent on his saving and his family’s income which depletes slowly. It is here were Accident cover helps.

    Another situation is where a person is diagonosed with a Critical Illness such as cancer, brain tumour, etc. Here the term insurance won’t pay as the person is still living. However, the person’s entire life savings may end up being spent towards his medical treatment. A health cover taken would just pay for upto the cover amount, but that would be grossly insufficient. In such case a CI cover pays a big lumpsum which can be used towards medical treatment as well as paying off any liabilities such as a home loan.

    Hence to summarise :
    1. A person should have a term insurance to cover your life in case you die;
    2. He should have a CI cover to protect your savings in case you have a CI
    3. He should have an Accident cover to protect you in case you don’t die in an accident;
    4. A health cover, for normal hospital bills (as it is probably that a person doesn’t die in most of their medical requirements but suffers a major blow on their savings).


    1. Ramesh says:

      A real-world example of the costs of these covers will help put things in proper perspective.

      In my opinion, it is not practical (and advisable) to cover each and every type of risk because of two reasons:
      1. There are way too many clauses and sub-clauses in Critical Illness to be of ANY benefit.
      2. Even the accident cover is a complicated thing. I do not really think, it makes ANY sense to have an additional accident cover.

      3. A normal health cover and a term insurance cover are good and reasonable.

      1. BanyanFA says:

        Hi Ramesh,
        A good point – it defers from a person to person and their aptitude. Irrespective of many clauses, it does make sense that on a minimum Critical Illness cover is taken along with a Term Insurance.


        1. Ramesh says:

          Please provide an example for say 30 year old male.


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