critical illness health insurance
  • Why Accident Insurance and Critical Illness Insurance Are Necessary?

  • Published By:
  • Category: Insurance
  • Published Date: September 14, 2018
  • Modified Date: May 13, 2020
  • Reading Time: 3 Minutes

Featured Image Caption: Critical Illness Health Insurance

When it comes to buying health insurance plans, you can see many types and variants as per the needs and budget of your family.

People avail an ordinary health insurance plan and think that it will cover the treatment cost if you are diagnosed with a crucial illness, but it not be the case.

Yes, to help you cover the entire cost of the health-based needs, you may need to also avail a critical illness insurance plan. Let’s know some major differences between the normal health insurance plan and a critical illness insurance policy.

What is the critical illness insurance?

Regular health insurance plans help to reimburse the medical expenses which also includes the hospitalization cost. On the other hand, the critical illness insurance, as the name suggests, is a special plan that pays you a sum if you are diagnosed with risk-based diseases such as:

  • Heart attack
  • Paralysis
  • Coronary artery bypass surgery
  • Major organ transplant
  • Cancer
  • Multiple sclerosis
  • Stroke

If you are diagnosed with any of the aforementioned crucial diseases, the critical illness insurance pays some lump sum amount. You may use the money to replace lost income, treatment expenses, repay debt or make lifestyle changes for recovery.

Premium amounts

The normal health insurance cost is higher because it offers a widespread cost of possible events. As a result, you need to pay a higher premium amount. On the other hand, a critical illness insurance policy covers only some pre-determined health condition or illnesses.

If you are diagnosed with one of the illnesses that are covered in the critical illness insurance scheme, you are bound to get the entire assured sum as a lump sum advantage. The only thing is that you can make only one claim during the tenor of the policy. As a result, you can make the most of the critical illness insurance policy by availing a higher coverage at a lower premium payment.

The coverage of the insurance

Any standard health insurance plan will cover hospitalization due to an accident or medical condition, pre and post hospitalization costs, day-care expenses and more. On the other hand, a critical illness insurance cover only specialized diseases which may differ from insurer to insurer.

The critical illness insurance covers all that’s outside the umbrella of a normal health insurance plan like critical and rare diseases. They include loss of income, travel, boarding and more. You can also make the most of the available funds for costs incurred due to a lifestyle change post a diagnosis.

Things to consider before availing the critical illness insurance:

  • Waiting period

Most of the critical illness insurance policies may have a waiting period of up to 90 days from the date of enrollment before you can begin making a claim.

  • The assured sum

While selecting the assured sum, it is vital to consider the future inflation because the overall costs of the treatments for critical diseases are constantly on the higher side.

  • Number of critical illness coveted

A critical illness insurance policy is of no use if it is unable to cover the cost of any rare or critical disease that you are suffering from or may suffer in the future. Thus, before signing the deal, ensure to check the number of diseases that are covered by the policy.

The Bottom Line

You just went through some vital inputs about the key differences between the critical illness insurance and a normal health insurance plan. You can opt for one as per your needs, budget and other factors.

Sidharth Kapoor

By Sidharth Kapoor
who is a financial insurance advisor and residing in New Delhi.

Member since September, 2018
View all the articles of Sidharth Kapoor.

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