Access to better healthcare is becoming challenging for common people due to the rising expenses of medical treatments and procedures. Having a health insurance policy is necessary in such a scenario to ensure adequate healthcare coverage during medical emergencies.
However, if you have critical illnesses like kidney or liver failure, cancer, etc., a basic health insurance plan will not be enough to cover your expenses. Here comes the need for a critical illness cover with your health insurance plan to ensure financial security if such illnesses are detected.
Here’s more on health insurance and critical illness cover and their differences!
What is health insurance?
Health insurance, as the name suggests, is a policy that covers your healthcare expenses up to the sum insured value. It is renewed every year to keep your coverage benefits running. It covers the expenses incurred in hospitalisation, daycare, treatment, surgery, ICU, ambulance, medication, and even OPD, depending upon the policy.
There are two broad types of health policy in India: indemnity benefit, which pays the actual expenses incurred and fixed-benefit, which pays a fixed coverage.
What is critical illness cover?
Critical illness cover, as the name suggests, provides financial protection against the expenses incurred in the treatment of a severe illness. It is a fixed-benefit policy that offers a one-time lump sum payout upon diagnosis of a critical illness. The coverage is available for heart attack, cancer, major organ transplant, or kidney failure.
You can use the coverage amount for other necessary expenses, such as home help, income replacement, treatment gaps, rehab, etc. Critical illness cover is a classic benefit-based insurance product under the framework of the Indian health policy.
What is the difference between health insurance and critical illness cover?
The difference between health insurance and critical illness cover is explained in the table below:
| Parameters | Health Insurance Plan | Critical Illness Cover |
|---|---|---|
| Coverage | Covers diseases, accidents, pre-existing diseases, and even maternity in some policies. | Covers a limited list of critical illnesses as decided by the insurer. |
| Benefits | Offers benefits like add-ons, cashless treatments, and coverage for all family members. | Policyholders can claim a lump-sum amount upon being diagnosed with a specific critical illness. |
| Premium | Premium of the health plan depends on the sum insured amount, number of members covered, coverage and the insurance company. | The premium of critical illness cover depends on the number of illnesses covered, the sum insured amount, and the insurer. |
| Waiting period | There can be a waiting period of 1 to 3 years for pre-existing diseases or to claim the maturity benefit starting from the date of policy. | Critical illness cover usually comes with a waiting period of 90 days starting from the date of policy. |
Which is better: health insurance or critical illness?
Whether you want to buy health insurance or critical illness cover depends on your medical needs. Maintaining a strong insurance portfolio is crucial to seeking financial backup during medical emergencies.
Both critical illness coverage and health insurance offer adequate coverage based on your healthcare needs. So, you should purchase a health insurance plan with a family floater and critical illness cover to ensure comprehensive coverage.