The right cover for cancer risk: Critical-illness or indemnity?

My family has a history of intestinal cancer. Should I opt for an indemnity plan or a critical-illness cover?

- Shilpa Arora

—Name withheld on request

Since your family has a history of intestinal cancer, it is crucial to carefully evaluate your health insurance options to ensure comprehensive financial protection. Critical-illness plans and indemnity-based health insurance plans serve different yet essential purposes in managing potential medical expenses.

A critical-illness plan provides a lump sum payout on the diagnosis of a covered illness, including certain types of cancer. This sum can be used for various expenses beyond hospitalization like alternative treatments, home care, loss of income, or travel for advanced medical care. Consider that cancer treatment can be prolonged and financially draining, having a critical-illness plan could help you manage additional costs that are not covered by a traditional health insurance policy.