The Difference Between Critical Illness Insurance And Health Insurance
Traditional health policies pay for hospitalization and/ or domiciliary expenses
. However, critical illnesses can pose a greater financial burden than just the medical expenses on treatment. These diseases can also lead to full, partial, temporary or total disability and a change in lifestyle. The loss incurred could be far more than what the insurance covers.What critical illness insurance does
This is where critical illness insurance comes into the picture. In critical illness insurance, the insurer makes a lump sum payment if the policyholder is diagnosed with one of the critical illnesses listed in the policy. The illnesses generally covered include cancer, kidney failure, paralysis, coronary artery bypass surgery, major organ transplantation and so on. HDFC ERGO General Insurance is one of the companies that offers critical illness cover.
Health insurance vs critical illness insurance
While many people have mediclaim/ health insurance policies of their own or through their employers, they tend to ignore critical illness cover, thinking that its just a kind of medical insurance. But there are certain differences between a health insurance policy and critical illness insurance policy.
A Regular Health Insurance Policy covers any illness disease or injury as long as within the purview of policy, whereas the critical illness insurance covers a pre-defined/ pre-specified illness only.
Health Insurance reimburses hospitalization expenses for any illness, disease or injury (i.e Reimbursement Plan), whereas critical insurance Pays a lump sum amount on the basis of the diagnosis (i.e Benefit Plan)
Policy in case of health insurance continues even after the claim is made, until renewal, wherein policy ceases once the benefit has been paid (few offer the choice of remaining insured for other illnesses) in critical insurance.
Waiting period is 30 days incase of health insurance whereas in case of critical illness waiting period is 90 days.
You can buy a critical illness as a standalone insurance policy or can opt for medical insurance policy with a critical illness rider.
Most insurance companies in India provide critical illness insurance as an addition to the life insurance/ health insurance policy with the payment of additional premium. This enables consumers to add value to their existing insurance policy.
HDFC ERGOs Critical Illness Insurance
HDFC ERGOs Critical Illness Insurance is designed specifically to cater to the needs of the high costs and associated treatment of lifestyle diseases like heart attack, coronary artery bypass surgery, stroke, cancer, kidney failure, paralysis, etc.
HDFC ERGO's Critical Illness cover provides a lump-sum amount on the basis of the diagnosis. It covers the high cost of associated treatments for the benefit of its policy holders, says Mr. Mukesh Kumar, Head Strategic Planning Group, HR & Marketing, HDFC ERGO General Insurance Co. Ltd.
Critical illness cover is offered to provide financial protection to individuals following the diagnosis of an illness deemed critical. The finances received could be used to:
Pay for the costs of care and treatment
Pay for recuperation aids
Repay debts
Replace any lost income due to a decreasing ability to earn
Fund a change in lifestyle
The unfortunate and sudden events or accidents in your life may call for the necessity of a health insurance or a medical insurance pertaining to the need of leading a secure life ahead.
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