Sizing critical illness cover on ₹1.5 lakh a month
Health insurance pays the hospital. Critical illness cover pays you. On ₹1.5 lakh a month, about ₹54 lakh — roughly three years of income — is the usual benchmark, because a serious diagnosis costs a household far more in lost earnings and changed circumstances than it does in hospital bills.
- Suggested cover
- ₹54L
- Paid as
- Lump sum
- Replaces
- Income
3× annual income
on diagnosis, not on bills
not treatment cost
What it is actually for
A cancer diagnosis or a major cardiac event does not just generate bills. It generates months away from work, a spouse cutting back to provide care, travel to a bigger city for treatment, and sometimes a permanent change in earning capacity. Health insurance covers none of that. A lump sum does.
Read the list, then read the definitions
Critical illness policies pay on listed conditions only, and the definitions are specific — a heart attack usually has to meet stated diagnostic criteria, a cancer has to be beyond a defined stage. Most policies also carry a survival period, typically 14 to 30 days from diagnosis. This is not a policy to buy on the strength of the brochure.
Rider or standalone
A rider on a term policy is cheaper and simpler; a standalone policy usually covers more conditions and can be sized independently. For most households, a rider is enough — the exception is a family history that makes a specific condition likely.
Where FamTally comes in
Record the policy in FamTally with its sum assured and renewal date and it counts towards the family's total cover instead of being remembered only when something happens. Premiums land in your monthly view, and reminders arrive before renewal rather than after. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How much critical illness cover do I need on ₹1.5 lakh a month?
About ₹54 lakh — three years of income — so the household can absorb an extended gap in earnings.
Do I need it if I have health insurance?
They do different jobs. Health insurance reimburses treatment; critical illness pays you a lump sum for everything treatment does not cover, including lost income.
When does it pay out?
On diagnosis of a listed condition, usually after a short survival period. The exact definitions in the policy document decide the claim, not the diagnosis alone.