Critical illness cover pays a lump sum if you’re diagnosed with a specified illness (e.g., cancer, heart attack, stroke). It complements health insurance—which covers hospitalisation—by providing cash for recovery, income replacement, or lifestyle adjustments.

Why It Matters for FI

• Income replacement — If you can’t work during treatment, the payout covers living expenses.
• Extra costs — Home modifications, travel for treatment, or alternative therapies not fully covered by health insurance.
• Peace of mind — Reduces the risk of depleting your corpus during a health crisis.

For FIRE

Consider a standalone critical illness policy or a rider on your term insurance. Factor the premium into your FIRE number and withdrawal planning. Coverage of ₹10–25 lakh is common for India.