Know the Difference between Critical Illness Insurance and Health Insurance Policy

Changing lifestyles in today’s world has inflated the need of health and critical illness insurance. With excessive exposure to pollution, junk foods, workplace stress and tensions, health becomes prone to either minor or critical illness. For any such illness, medical expense becomes so high that many people fail to bear the cost. In such critical health scenario, getting a medical insurance policy is the best way to deal with the exorbitant medical expenses.

Generally, two types of medical insurances are there- health insurance and critical illness insurance and they serve different purposes for the insured. Before one gets confused about which one to buy, a detailed discussion about both the insurances is needed.

Difference between Health Insurance and Critical Illness Insurance Plans:

Health insurance policies are related with any or petty health related issues, which are not critical by nature, whereas, critical illness insurance gives coverage to only critical and non-curable diseases, treatment of which is relatively more expensive. Diseases that fall under the category of any critical illness are - cancer, kidney failure, paralysis, stroke, first heart attack, Alzheimer, major organ transplant etc.

Health insurance policy entitles the insured to get reimbursement for hospitalization caused by any illness, disease or injury as long as it is within the purview of the policy and till the time the policy is valid. Various tests as well as medication of the insured also get covered by health insurance policy.

On the other hand, a critical illness insurance plan provides cover only for a pre-specified/defined set of critical illnesses. What is noteworthy here is that no other diseases or injuries get covered by critical illness insurance. The insured gets a lump sum from the insurer immediately or within a few days after being diagnosed with a critical illness. Remember, hospitalization and medications also do not get covered by critical illness insurance plan.

A health insurance policy continues to be valid even after a single claim or a multiple claim has been made and remains in force until the insured amount gets busted.

For critical illness insurance, lump sum that the insurer provides is tax-free but after onetime payment, the policy does not exist anymore for the insured. However, today to keep the clientele intact, even when the validity of the critical illness insurance policy is expired, some insurance companies are offering coverage with a new or revised insurance premium rates.

However, as today a growing number of people are suffering from critical illnesses, to meet the skyrocketing expenses of the treatment and hospitalization, buying a critical illness insurance gives the insurer and his/her family peace of mind knowing that nobody has to worry about financial difficulties at times of being diagnosed with critical illness. The best part of the critical illness insurance is that it gives family protection in terms of paying telephone bills, electricity bills to mortgage or rent. Critical illness insurance can be clubbed with a life insurance policy by paying an additional premium as add-ons.

Before buying any insurance policy, health or critical illness insurance, remember to consult the best insurance provider who can suggest the best policy that suitably fits into your bag and match up your requirements.