Why Do You Need a Critical Illness Health Insurance Policy?

There are numerous health insurance policies made available to you in the market. Picking the one that best suits your needs and requirements can be a tough task. You might assume that your normal health insurance policy covers several ailments, including critical illnesses. However, that is not the case.

What is Critical Illness Insurance?

While normal health insurance policies cover your medical expenses and hospitalization costs, critical illnesses policy insurances give you a lump sum amount to cover the costs to diagnose and treat your illness. Some of the most common illnesses covered under this plan are Cancer, paralysis, stroke, heart attack, and major organ transplant.

The lump-sum given for your illness can be used for treatment expenses, to repay debts, replace lost income, or invest in lifestyle changes that promote quick recovery. The option of how you plan to use this money depends on you. This insurance plan is advisable to take under senior citizens policy as they are more prone to the diseases generally listed under critical illness medical insurance policy.

Difference Between Critical Illness Insurance and Normal Health Insurance 

Buying single health insurance to match all your medical requirements may not be a great idea. Ideally, there must be a medical insurance plan to cover life-threatening illnesses, because normal medical insurance does not provide cover against critical illnesses. A critical illness health insurance plan provides a lump sum benefit to ensure you make-up with all the expenses that are incurred during a life-threatening illness. So, here we have listed down a few major differences between critical illness insurance and normal health insurance policy.

The Difference in Premiums

The premiums of normal medical insurance are higher as it covers a larger scope of possible health issues. Whereas, critical illness insurance covers only certain pre-defined health illnesses. If you are diagnosed with any of the mentioned illnesses, you are given the entire lump sum to deal with the expenses involved in any way you want. Thus, critical illness insurance gives you a larger cover with lower premiums to be paid.

Insurance Coverage:

The coverage for both these insurances vary widely. While your normal health insurance covers all your hospitalization expenses pre and post-treatment for ailments and accidents, your critical insurance covers the expenses you incur due to your illness. They also differ from one insurer to another and from one disease to another. It also includes travel costs, loss of income, boarding, and more. These funds can also be used to treat or change lifestyle after treatment.

Things to Remember while Buying a Critical Illness Insurance

There are certain points to remember when opting for critical illness insurance in India. They are:

  • Waiting Period
  • Sum Assured
  • Number of Diseases Covered

Waiting Period:

Most of the companies like Care Health Insurance India that offer a critical illness insurance plan have a term of waiting period before issuing it to you.

Sum Assured:

Ensure you take into account the sky-rocketing medical costs involved and inflation when considering the amount of sum assured. 

Number of Diseases Covered:

Although critical illness insurances offer lower premium rates, they only have certain pre-determined illnesses covered under their plan. It is important to take a look at that list and ensure that you require this plan to make up for the expenses.

Both critical illness insurance and health insurances are important for you in the long run. You never know when you have to face a health risk in terms of accident, illness, or a medical condition. Both of these insurance plans offer different benefits, inclusions, and exclusions. While it is a safe option to avail both the options to avoid financial burdens in the future, it is equally important to be aware of their characteristics and purchase the ones that you really need.