subject: Know About Mediclaim And Critical Illness Insurance [print this page] The most commonly known insurance cover to provide financial aid at the time of illness is Mediclaim. However, there is one more important policy which is complementary to Mediclaim and the policy is Critical Illness Cover. There are a whole lot of differences between these two policies in-spite of the fact that both relate to provide financial security needed at time of illness. Let us review the differences in detail: Benefit vs. Indemnity insurance: Critical illness insurance falls under the benefit insurance plans whereas the Mediclaim is a part of indemnity insurance. Benefit plan pay the whole amount in case of any Critical illness, whereas in indemnity plans, just the cost of treatment is given to the insured.
Conditions to apply for insurance : Mediclaim is given back the assured sum in case the insured gets ill and is admitted to the hospital for the treatment, whereas in Critical illness cover, the assured sum goes to the insurer once the illness is identified, irrespective of the fact if the insured gets treatment in hospital or not. Total amount paid to the insured: Suppose the Mediclaim is for Rs. 1, 00,000, whereas the cost of treatment came out to be 35,000. In this case the amount which will be paid to the insured is maximum up to 35,000. If we consider the same case in Critical illness insurance, where in the policy is for 1, 00,000 than no matter how much is spent on the treatment, if it is less than 1,00,000, equals to it or more than that, the insured will get the whole amount of policy that is 1,00,000. Premium which is charged: Due to the coverage which the policy provides, premium which is paid under Critical illness insurance is more as compared to Mediclaim policy. More than one policy: In case a person has more than one Mediclaim policy and he falls ill, now the amount of reimbursement would be shared among the Mediclaim insurance policy providers on pro rata basis. Where as in case of more than one Critical insurance cover, the insured will get total assured amount from each company, this is one of the reason that Critical cover are also known as benefits policy.
Profit and loss: If the amount of treatment falls below the total amount of insurance policy in Critical illness cover quote, the insured would end up gaining profits as this policy pays the total sum for which a person is insured. In Mediclaim the amount which is generally reimbursed up to 65-70 % of the total expenditure on treatment, due to various clauses defined in the policy. It is best to take a combo of Mediclaim and Critical illness insurance to take the proper benefits of health insurance.
by: David Jones
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