Difference Between Health Insurance And Critical Insurance Plan Explained

There is a misconception among most of the health insurance policyholders that health insurance plan and a critical insurance plan are the same. In many cases, we often use the terms interchangeably as well. It is generally believed that if you have any one of them, it will provide you with the required cover. In reality, these two insurance covers have a lot of differences. Both policies provide unique coverage for the insured person.

Buying a health insurance plan is a crucial decision, and you must make a decision only after understanding the coverage you will get in the plans you have shortlisted. A good health insurance cover can provide you with financial assistance at the time of need so that the unexpected medical expenses do not hamper with your life goals.

To make sure you know which plan you should buy and if you should opt for both health insurance plan and Critical Insurance Plan or not, first you need to learn about the differences between the two.

Health problems and expenses covered

When it comes to the traditional health insurance plan, it mainly covers the expenses around a hospitalization. On the other hand, if you get diagnosed with a critical illness, the critical insurance plan will provide you with a lump sum amount assured under the insurance plan.

Understandably, hospitalization covers only a part of the total expense that may arise because of the illness. Thus, with the health insurance plan, you will only get cover for the medical bills but not for the indirect loss of funds. On the other hand, critical insurance cover will cover everything ranging from pathology tests, therapy, cost of surgery, post-surgery care and more. The main purpose of the critical insurance plan is to provide funds to cover the financial loss caused due to a critical illness.

Under critical insurance cover, most of the non-communicable diseases such as heart attack, kidney disease, liver failure and cancer are covered. Most of the insurance plans can provide cover for more than 30 critical illnesses. You can check the list of the diseases covered while comparing insurance plans.

Comparing the benefit model

In a general health insurance plan, you will get financial support for the expenses that have occurred due to the illness. The insurance company will require bills and medical records to provide the benefit. There is a claim process that you have to go through to get the benefit. Though many insurance companies offer cashless facilities as well, it is limited to selected hospitals only. On the other hand, the critical insurance plan will provide you with a lump sum amount irrespective of the cost of the treatment. It will help in supplementing the financial loss.

The policy period

A general health insurance plan is valid for one year, and you have to renew it annually. On the other hand, a critical insurance plan is bought for a longer period that may range up to three years to 20 years or more.

Waiting period

When it comes to general health insurance plan, the waiting period is generally of 30 to 90 days. However, it is not applicable if an accident happens during the waiting period. On the other hand, every insurance company has a different waiting period for critical insurance plan and sum assured under the policy can only be claimed if you are diagnosed with the said illness after the waiting period.

Survival period

In general health insurance plan, there is no survival period clause. On the other hand, for a critical insurance cover, the insured person has to survive for a minimum of 30 days after being diagnosed with the ailment to get the benefits of the coverage.

Policy expiry/validity

General health insurance plan is valid till the end of the policy term, and you can renew it again. On the other hand, under the critical illness plan, once you got the claimed amount, the policy will cease to be active.

Final words

Critical insurance cover is an important investment that you should make with a general health insurance plan. A combination of health insurance and critical insurance will provide you with the much need comprehensive cover that will support you in the time of an unexpected medical emergency. Though they both provide a type of health cover, many differences among them make them equally important.