Is It Better To Take Critical Illness Cover or Health insurance?

The number of Indians succumbing to various types of non-communicable diseases is on the rise. Indians are suffering from various medical conditions such as cancer, heart attack, kidney failure among others. In order to financially protect yourself from such illnesses, it is necessary to invest in a critical illness cover. It is important to note that your indemnity health plan may not offer enough coverage against such diseases and hence it is necessary to buy a separate policy to cover critical illnesses.

Many are under the misconception that critical illness plans and health plans are same. However, this is not the case. It is imperative to understand the meaning of the two types of plans and their differences.

Understanding Health Insurance Policies

Health insurance plans offer an extensive scope of coverage. The insurance provider is liable to pay for various hospitalization-related expenses such as inpatient hospitalization, pre-hospitalization costs, post-hospitalization expenses, and ambulance costs, among others. Such a policy is designed exclusively to provide coverage for emergency or planned hospitalization.

Understanding Critical Illness Insurance Policies

A critical illness cover is an insurance which pays you a lump-sum amount if diagnosed with a covered critical illness under the Policy.

Difference Between Critical Illness & Health Insurance Policy

Though a critical plan is a type of a health cover, it has numerous differences as compared to a health insurance policy.

1. Scope of Coverage

   A health insurance plan provides coverage for medical expenses such as hospitalization, day care, organ donor, ambulance and pre and post hospitalization expenses. A critical illness plan, however, extends its scope of coverage to specified illnesses only. Some critical illnesses covered under such a plan include cancer, kidney failure, multiple sclerosis, and first heart attack.

2. Benefit Received

   Under a health plan, the insurer provides indemnification of medical expenses incurred up to the chosen sum insured limit.

   Whereas in a Critical illness plan, you receive a fixed lump sum payout on diagnosis of a critical illness. This amount does not depend on the actual expenses incurred by you. The treatment of a critical illness can be long and ongoing which may need more monetary support. You may even not be able to work and you can use the lump sum amount against a financial burden in these times.

   Both health insurance plans and critical illness insurance policies are different in nature and come with their own set of features and benefits. It is highly recommended to purchase a critical illness policy along with your base indemnity plan. This ensures a wider coverage and financially secures your future against unanticipated medical contingencies