Question 1

What is critical illness cover?

Accepted Answer

Critical illness cover pays out a lump sum on diagnosis of a listed serious illness (like cancer, heart attack, or stroke), regardless of the actual treatment cost — separate from your regular health insurance, which reimburses actual hospital bills.

Question 2

How much critical illness cover do I need?

Accepted Answer

A common guideline is 3-5 times your annual income, since the payout needs to cover both treatment costs and lost income during a potentially long recovery period — younger people are often advised toward the higher end since they have more years of income to protect.

Question 3

Is critical illness cover a replacement for health insurance?

Accepted Answer

No — they serve different purposes. Health insurance reimburses actual hospital and treatment expenses; critical illness cover pays a fixed lump sum on diagnosis that you can use for anything, including expenses health insurance doesn't cover, like income replacement or non-medical costs.

Question 4

Does existing health insurance reduce how much critical illness cover I need?

Accepted Answer

Not directly — critical illness cover addresses a different gap (income loss, non-medical costs, treatments outside your health policy), so most planners recommend it as an addition to adequate health insurance, not a substitute or an amount to net against it.

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