The time for which the policyholder must survive after being diagnosed with a health issue such as cancer. This is called the survival period. Under the critical illness insurance policy, there are circumstances in which the insurance company does not provide coverage until the policyholder survives this period.
When you receive treatment for a critical illness, the insured person will provide you with some of the lump sum amounts under the insurance policy to cover the treatment expenses. Giving the sum of the lump amount to the policyholder will create liability and relax the insurer.
Hence, many insurance companies have a survival clause under the health illness plan and pay the insured amount of money if they survive.
Affects Premium When the Person Does Not Survive in the Survival Period?
In most cases of critical illness health insurance plans, the insurance does not provide a return on the premium option, if the person does not survive in the survival period. In simple words, the cost of the return of the premium indicates the refund on the total paid premium by the policyholder before their death. These characteristics are available under life insurance plans.
In the case of the health insurance plan, if the policyholder dies during the survival period, then no return is offered on the premium, and no amount is paid to the members of the policyholder’s family.
Difference Between Survival Period and Waiting Period
The two concepts of the survival period and waiting period are different. A survival period is when you need to survive under the treatment of a critical illness.
On the other hand, the waiting period is the period where you have to wait to increase the insurance claims. Generally, the survival period is less than the waiting period.
For example, the critical health insurance policy may come with a waiting period of 90 days and 30 days for survival. The waiting period is already a part of the critical health insurance policy, and it is also present in other types of health insurance plans.
Hence, the survival period is valid after the person gets diagnosed with a critical illness, whereas the waiting period is activated as soon as possible after buying.
You may also opt for other types of insurance, such as travel insurance if you get a short survival period under the policy.
Conclusion
It is concluded that the survival period is a necessary condition for critical health insurance. Until the person does not survive in the survival period, they and their family members are unable to get the amount under your policy.
You can easily switch one plan to another with the same insurance provider. You can also renew the time of your policy since the new insurance period starts.
Hence for this, it is suggested to check the survival period of a critical illness health insurance plan before you buy it and must choose the plan with a short survival period.
