In terms of protecting your health and finances, both critical illness policies and health insurance are important, as they serve different purposes. Health insurance generally takes care of regular medical expenses and hospital visits, while a critical illness policy gives you a lump sum payment for severe conditions like cancer or stroke. Understanding these differences can aid you in making informed choices and ensuring you have complete coverage for unexpected health challenges.
In this article, we will discuss in detail what these two policies are and the differences between them. Read on.
What is Critical Illness Insurance?
Critical Illness insurance is a type of health insurance which provides a lump sum that covers expenses upon a diagnosis of life-threatening illnesses and diseases. This type of insurance pays at once when diagnosed with any specified condition or disease listed in the policy.
Features of a Critical Illness Insurance
Here is a list of some features of a Critical Insurance cover that you can avail of:
- Quick and efficient process of claim settlement
- Premiums are very low compared to other types of health insurance policies
- The policyholder gets the lump sum after post-claiming of the policy
- Provides financial security for serious diseases and illnesses
What is Health Insurance?
Health Insurance refers to a financial agreement between the policyholder and the insurer who provides reimbursements for medical expenses. It helps cover the costs of medications, hospitalisation charges, doctor visits and more.
Features of Health Insurance
Here is a list of benefits of health insurance that you can get:
- Provides cashless hospitalisation benefits to policyholders
- Grants access to quality healthcare at premium hospitals
- Covers the cost of critical illnesses
- Provides hospital encashments (might vary depending on your insurer)
Difference Between Critical Insurance and Health Insurance Policies
There are a few differences between Critical Insurance and Health Insurance coverage policies. While health insurance is more basic, critical illness coverage provides more extensive benefits. Here is a list of some differences between them:
●Policy Coverage There is a limit to the policy coverage of Critical Illness insurance as compared to a basic health insurance policy. A Critical Illness policy covers only specific types of illnesses. For instance, if you’re exploring health insurance in Kerala, combining both types might offer you the most comprehensive coverage. While a health insurance policy covers charges for hospitalisation, diseases, maternity charges, etc.
- Policy Coverage
There is a limit to the policy coverage of Critical Illness insurance as compared to a basic health insurance policy. A Critical Illness policy covers only specific types of illnesses.
While a health insurance policy covers charges for hospitalisation, diseases, maternity charges, etc.
- Claim of Insurance
When it comes to Critical Illness Policy, the insured sum is paid to the policyholder once they are diagnosed with any type of illness mentioned in their policy. They can then use the sum however they deem fit.
The policyholder gets a payment of the sum insurance of Health Insurance coverage when hospitalised and for other medical treatments. This type of coverage can be availed for non-medical purposes but only if the policy has inclusions of additional coverage.
- Model of Benefit
To get the sum insurance benefit of a Critical Illness Insurance policy, you do not need to provide proof of the medical charges or bills incurred.
, when it comes to Health insurance, the policyholder needs to show proof of hospitalisation charges and bills to get the benefit.
- Amount of Premium
The premium of Critical Illness insurance coverage depends upon the insurer that you choose, the sum insured and the number of diseases that it covers.
Whereas, the premium of health insurance coverage depends upon the given coverage, the number of members in the policy and the sum insured.
- Expiry of Policy
A critical illness cover expires after a diagnosis of the policyholder with any kind of critical and life-threatening illness. Then the sum is given at once, the policy ceases to exist after it.
However, health insurance remains active until the end of the policy and can be renewed towards the end of a policy.
What Should You Choose: Health Insurance or a Critical Illness Policy
The choice ultimately depends upon your unique needs. While health insurance would cover your hospitalisation and medical expenses, Critical Insurance, on the other hand, would provide you with financial aid for critical diseases.
You will get the most benefit if you opt for a Critical illness cover policy as a rider or add-on to your pre-existing health insurance policy. Getting both of them as a family floater policy would cover all your family members.
Conclusion
If you conduct proper research, then you will find that getting health insurance is one of the best decisions to make for securing your future. Critical Illness Policy and Health Insurance are similar yet cannot be more different. Make sure to thoroughly evaluate your needs before deciding to select a policy. Get health insurance and secure your health today!
