How to decide sum assured for Critical Illness policy

POSTED BY Sreerup ON July 26, 2013 3:45 pm COMMENTS (4)


I am planning to take critical illness policy. What are the factors should I consider for deciding how much sumn assured should I go for? I don’t have any history of major illness.



4 replies on this article “How to decide sum assured for Critical Illness policy”

  1. Sreerup says:

    Thank you all

  2. BanyanFA says:

    My opinion would be more inclined towards the second response. Critical Illness calculations should be done the way you do for Term Insurance. The two major costs involved in CI are the medical costs and post medical support if a person is alive. Hence, go for the maximum sum assured your money can afford with a minimum of atleast 10 lacs.

  3. Simple rule of thumb choose the highest sum insured you can afford. What else can anyone do!

    “I don’t have any history of major illness’ is a prerequisite. Else no one will even give you even health insurance.

    What is more important is history of major illness is your family. Your parents, their siblings, grandparents etc.

    So you should your policy accordingly

  4. Biswa Singh says:

    I suppose you have a medical health insurance to take care of medical expenses during a critical illness. Now suppose you get first heart stroke and you could not work for 4 months. Now suppose your monthly expense is rs 50K per month then 4 X 50K = 2L should be the sum assured.

    Keeping my mind some worst case scenrio i would go for a sum assured which is equivalent to 6-12 months of my monthly expense. Personally i have 10L sum assured of critical illness.

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