Difference Between Critical Illness Insurance and Normal Health Insurance

There are numerous insurance policies made available to you in the market. Thankfully, now, leading insurers like Care Insurance Company have their online presence, and they offer policies digitally. Picking an option, the right health insurance policy for your family that best suits your needs and requirements can be challenging. You might assume that your normal health insurance covers for several ailments, including critical illnesses. However, that is not the case. Going with separate critical illness cover is way better for those who think they may be at risk of such illnesses.

So, What is a Critical Illness Insurance Plan?

While normal health insurance covers your medical expenses and hospitalization costs, critical illnesses insurance plans give you coverage, usually as a lump sum amount, for the costs to diagnose and treat your illness. However, some plans, like the one offered by Care Insurance Company, are indemnity-based plans. Some of the most common diseases 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, 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 plan is advisable to take under medical insurance for senior citizens as they are more prone to these diseases.

The Difference in Premium:

The premium costs of normal health insurance are higher as it covers a larger scope of possible health issues. On the other hand, critical illness insurance covers only certain pre-determined health illnesses. If you are diagnosed with one of the mentioned illnesses, you are given the entire lump sum to deal with the expenses involved in any way you want. Some plans will indemnify the medical costs up to the sum insured. Thus, critical illness insurance gives you broad coverage with a lower premium to be paid.

Insurance Coverage:

The coverage for both these insurance plans varies 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.

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

  1. Waiting Period – Most of the companies that offer a critical illness insurance plan have a term of waiting period before covering the expenses for you.
  2. Sum Insured – ensure you take into account the sky-rocketing medical costs involved and inflation when considering the amount of sum assured.
  3. The Number of Diseases covered – Although critical illness plans offer lower premium rates, they only have certain pre-determined illnesses covered under their plan. It is essential to look at that list of diseases and ensure that you require this plan to make up for the expenses.

Both critical illness insurance and standard health insurance plans 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 genuinely need.


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