Everything you need to know about disease-specific health insurance plans

5 MinsApril 14, 2020

If you are worried about the expenses you may have to incur in the likelihood of being diagnosed with coronavirus, don’t worry. Health insurance policies will reimburse the treatment cost. Earlier this month, the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) issued a circular that mandated that existing health insurance policies would cover the expenses towards treatment, quarantine, and hospitalisation caused by a Covid-19 infection. The same circular also advised health insurance companies to devise products aimed explicitly at treatment for Corona Virus.


But you may be wondering as to what is the need for a disease-specific policy when an omnibus health plan covers the same disease. The essential point is that a disease-specific policy gives a more comprehensive cover for that particular ailment. They provide coverage at all stages of the disease – early or advanced. They work best when bought as a supplementary plan to a family health plan.

For example, if your family has a history of cardiac disease, it will make sense to opt for a specific health insurance plan that caters to cardiac care, diabetes, hypertension, cancer care and in recent cases even dengue.

[Also Read: 8 features you must compare before buying a health insurance plan]

A disease-specific plan does away with the long waiting periods associated with regular insurance plans. It is a niche plan that covers all stages of the disease right from early onset to advanced stage, compared to a generic critical illness plan that covers multiple critical ailments, but only for the last stage.

How much do they cost?

The premiums for these plans are on the higher side. They range between Rs 8,000 for diabetes to Rs 30,000 for cardiac care for a cover of Rs. 3 lakh. Cancer plans start at slightly less than Rs 1,000 for a cover of Rs 10 lakh. Cancer plans generally have ten-year terms while niche diseases have a term of one year.

What are the limitations of these plans?

As the name suggests, these plans only cover specific diseases. This means if you have a plan for cardiac care but get hospitalised for another illness like COVID-19, you will have to bear hospitalisation expenses from your pocket, and that could turn out to be pretty expensive. A comprehensive health insurance plan costs less, around Rs 3,000 to Rs 6,000 for a cover of Rs 3 lakh.

Should you get a disease-specific cover?

Yes, you should get a disease-specific plan but only as an addition to your primary health plans. They are also ideal for employees who are covered by their office insurance plans, for people with a family history of a particular disease and for people who know their unhealthy lifestyles will cause them problems.

Axis Bank, along with its Health Insurance partners, offers a range of health insurance plans, including a disease-specific plan for coronavirus. Please click here to know more.

Disclaimer: The Source, a Mumbai-based content creation, and curation firm have authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.