Most people confuse themselves into thinking that Health Insurance and Critical Illness Insurance are similar to each other when they are not. Some people do not understand whether to buy a health insurance plan or a critical illness insurance or a combo of both.
What you don’t realize is that there’s a vast difference between the two as each one of them serves a unique requirement, here’s how.
Coverage
Coverage is offered for a range of illnesses. Health insurance also provides restoration of the sum insured, ambulance charges, domiciliary hospitalization, etc. After the waiting period is completed, even pre-existing diseases and maternity diseases would be covered. However, the number of critical illnesses covered under a policy depends on your insurance provider.
Policy Period
Usually, you avail a health insurance plan for a year and then renew it every year. But, the case isn’t similar for critical illness insurance, it is bought for a longer duration of time.
Waiting Period
The waiting period of a health insurance plan is usually 30 to 90 days. Hence, you cannot apply this if there is an accident. Under a critical illness insurance, the waiting period varies from one health insurer to another. You can claim the sum insured amount upon diagnosis of the illnesses only after this period is completed.
Reimbursement
Under a health insurance policy, if the hospitalization exceeds 24 hours, the expenses will be covered. You can also get the medical bills and treatment costs reimbursed, after the treatment is completed. However, under critical illness insurance, the sum that is assured will be paid to you in full, if you survive 30 days after the surgery or diagnosis.
Benefits
Health insurance policies are indemnity plans, and they cover the actual hospitalization. For filing a claim, you must submit all the medical bills, treatment expenses and other relevant bills. After this, you will be compensated upon verification of your bills and medical expenses.
However, critical illness insurance are fixed benefit plans. If you have any critical illness and it is included in your insurance policy, you will receive an amount which can be utilized by you according to your wish. You can do whatever you want, such as paying off the liabilities, taking the best treatment, paying off any other debts with the received amount after you’ve claimed a critical illness plan. Whatever sum insured is received by you after claiming health insurance can only be used to cover the medical expenses.
Cost of premium
Because of its comprehensive coverage, the premiums that are paid in case of a health insurance plan are higher. On the other hand, under the Critical Illness Cover, the premiums are less. Go for the plan that best suits your needs and the premium does not burden you.
Coverage for members
A regular plan provides health insurance for senior citizens and even an entire family. However, under a critical illness cover, only an individual is covered based on the sum insured. In simple words, both health insurance plans and critical illness plans cannot be replaced with each other. You get unique and different benefits or coverage from both these insurance plans.