With the increasing costs of medical treatments and hospitalisation, people need to be financially prepared for medical exigencies. One of the ways of doing this is by purchasing a health insurance policy. However, a normal health insurance cover does not offer protection from critical illnesses. This is because normal health insurance is indemnity-based. This means that the policyholder has to file a claim for every hospitalisation to get coverage.
 

However, insurance providers also offer critical illness insurance that offers a lump sum benefit if the policyholder is diagnosed with any critical illness as specified in the policy. In this article, we will talk about health insurance and the difference between normal and critical insurance cover.

 

 

Critical Illness Meaning

 

Critical Illness is a disease, sickness, or corrective measure including:

 

• Kidney failure
• Cancer
• Heart Attack (Myocardial Infarction)
• Multiple Sclerosis
• Paralysis
• Total blindness
• Coronary Artery Surgery (Bypass)
• Heart Valve Surgery
• Stroke
• Aorta Graft Surgery
• Coma
  
  

 

Why Do You Need Insurance for Critical Illnesses?

 

When an individual is diagnosed with a critical illness or needs to go through a corrective measure, as specified above, the total cost of treatment can be very high. Also, there are many non-medical costs associated with the care of the person suffering from such illnesses. Hence, it is important to have adequate coverage for such illnesses.

 

 

Normal Health Insurance vs Critical Illness Insurance

 

There are many differences between normal health insurance and critical illness insurance. Here is a quick look:

 

• Coverage

  A normal health insurance plan offers basic coverage for a range of illnesses and diseases, and accidents, including hospitalisation costs. Some policies also offer coverage for maternity-related expenses.

  A critical illness insurance policy offers coverage for a fixed number of serious diseases, sicknesses, and corrective measures. The insurance company will specify a list of diseases and corrective measures in the policy document that qualifies as a critical illness.

• Benefits offered

  A normal health insurance plan offers coverage for multiple family members, cashless treatments, and additional coverage options. In a critical illness insurance cover, the policyholder receives a lump sum payment of the sum assured if he/she is diagnosed with a critical illness.

• Premium amount

  The premium of a normal health insurance policy depends on the insurance provider, coverage provided, the number of members insured, and the sum assured of the policy. Critical illness insurance premiums depend on the insurance company, the number of diseases covered, and the sum assured.

• Waiting period

  For pre-existing diseases, the waiting period in a normal health insurance policy can vary between one and four years. Most insurance providers have a waiting period of 90 days for a critical insurance policy. Additionally, critical illness policies have a requirement for a survival period. The policyholder must survive a period of 14-10 days from the date of being diagnosed with a critical illness.
  
  

Claim Process

 

Here is the claim process for a normal health insurance policy:

• Cashless claim
  
  

  • The policyholder needs to avail of the treatment from a network hospital

  • Once the insurer approves the claim, then you can get the treatment done with minimal out-of-pocket expenses
    
    

• Reimbursement claim
  
  

  • The policyholder needs to pay the hospital bills and file a claim later

  • The insurer will ask you to submit all the reports and bills to process the claim

  • On approval, the claim amount is transferred to the policyholder
    
    

Here is the claim process for a critical illness insurance policy:

• If the policyholder is diagnosed with a critical illness, then he/she needs to wait for the survival period to get over before filing a claim

• The insurer will require details of the diagnosis and reports and will verify it

• On successful verification, the sum assured is credited to the policyholder’s account

 

Should You Opt for Normal Health Insurance or Critical Illness Insurance?

 

Choosing the right health insurance policy depends on the requirements of the policyholder. While a normal health insurance policy offers coverage for medical treatment and hospitalisation expenses, a critical illness policy offers protection from critical diseases and sicknesses. For example, if you are the sole breadwinner of a family, then you can purchase both normal and critical illness insurance along with a family floater policy.

 

 

Also, make sure that you purchase a life insurance policy to create a financial safety net for your family. Choose a reliable life insurance company and ensure that you go through the details of life insurance to purchase a policy that offers the appropriate coverage for your family. We offer a range of Tata AIA life insurance plans that are designed to cater to the varying needs of people. Go through our offerings and choose the one that can help you to create the best financial safety net for your loved ones.

 

 

Conclusion

 

Nowadays, it is easy to purchase health insurance and life insurance plans online. Make sure that you assess your health insurance needs before choosing between a normal and critical illness insurance policy. Also, get the right life insurance plan based on your needs.

L&C/Advt/2022/Aug/1839