With the ever-increasing medical inflation, it becomes difficult to meet expenses during medical emergencies. Many individuals, therefore, make a wise decision of investing in a health plan. Such an insurance policy helps combat huge medical expenses such as hospitalization, surgeries, and medicines, among others.
It is important to note that insurance providers offer critical health plans that prove beneficial in providing coverage against major illnesses. Many believe that health plans and critical illness policies are the same, but this is not true.
Understanding health insurance
A health insurance plan is exclusively designed to cover costs related to a medical emergency, which requires hospitalization. Such an insurance policy also offers financial protection against pre-hospitalization and post-hospitalization expenses.
This helps you focus on your health instead of worrying about the arrangement of finance.
Understanding critical illness plan
A critical illness policy covers specific life-threatening diseases as per the stipulations of the insurance plan. This may include cancer, kidney failure, or multiple sclerosis, among others.
Upon diagnosis of the critical illness, the insurance provider pays a lump sum benefit to the policyholder. This amount may be used to meet medical costs and other financial obligations as well.
Health plan or critical illness plan: Choosing the best option
Both health plans and critical illness insuranceplans have their own set of benefits. Make a right choice after analyzing your needs and comparing the benefits offered by both the insurance plans.
Following is a comparison of the four major features and benefits offered by them.
Medical plans ensure that all your medical expenses will be taken care of by the insurance provider in case of hospitalization.
This also includes domiciliary hospitalization, alternative treatments, and maternity expenses, among many others. On the other hand, critical plans provide a lump sum benefit upon diagnosis that may even be used as an income substitute.
Termination of the insurance plan
In case of medical policies, you may make claims on multiple occasions till the limit of sum insured is exhausted. However, critical illness plans generally expire once the claim has been made.
Scope of coverage
Health plans cover a wide range of ailments and diseases. The same is not the case with critical illness plans. Critical insurance is limited in the number of diseases covered. But, these diseases are major ones and even fatal in some cases.
Medical insurance plans generally come with a waiting period of 30 days since the day of policy purchase. Any pre-existing medical condition is covered after a period of one to four years from the date of policy inception.
Critical plans, on the other hand, have a waiting period of three months. You are not entitled to receive any plan benefits during the waiting period.
Both medical plans and critical illness policies have their own advantages. You may buy a health insurance plan to cover all your medical contingencies.
You may opt for a critical illness policy as an additional coverage option. This provides you with comprehensive coverage and ensures that you are financially protected in case of any ailment or disease.