Difference between Health Insurance and Critical Insurance
Health Insurance cover and critical insurance cover are two sides of the different coins. There are lots of differences between health insurance and critical illness insurance. Some of the prominent differences are mentioned below for your ready reference.
Features
Health insurance cover is a comprehensive cover that covers all your hospitalization expenses and other related expenses. Some private insurance providers also cover maternity benefits, OPD expenses, et al.
Critical illness insurance on the other hand covers all your life threatening diseases. The diseases are listed in the insurance policy. The major illnesses covered are multiple sclerosis, cancer, kidney failure, blindness, coronary artery disease, etc.
Type of Insurance
Health insurance is a contract between insurance holder and service provider where the policy is renewed after every month. While, critical illness cover is taken for a long period of time . It may range from 10 to 20 years.
Major advantages
Health or Mediclaim insurance is a plan where the individual can reimburse the expenses by producing bills as evidence. The insurance holder can also adopt for cashless insurance policy and the insurance payments will be directly settled by the third party agent.
The health insurance policy will be renewed every year and the policy will continue even after you have made the claim. In critical illness cover the insurance service provider pays a Lumpsum amount of money to the policy holder. The amount will only be paid; if you are diagnosed with the critical illness.
The main benefit of obtaining critical illness cover quote is that you don’t necessarily need to be hospitalized. The amount is paid on the diagnosis of the illness. The individuals need not to submit bills to obtain the money. The claims can even be obtained by showing photocopies. Moreover, the insured individual can spend the money as he desires. However, the downside is that once you have obtained the payment the policy ceases off.
Coverage
Health care insurance has wider scope in contrast with critical illness insurance. If you are planning to obtain critical illness cover quote then your particular illness will only be covered.
The cover is restricted to 6 to 30 diseases. However, the ailments covered under the policy may differ from one insurer to another insurer. Major insurance holder provides coverage for illness like cancer, heart attack, multiple sclerosis, major organ transplant, etc. It also takes into account post operative care, loss of pay, travel and boarding expenses. It is essential to read the terms and conditions carefully.
Waiting period
Health insurance policy has a waiting period of around 30 days. This excludes accident related cover.
If you are planning to get Lumpsum payment, then you need to wait at least for 3 months. The cover is revoked back; if the person dies within 30 days of illness.
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