pays for your hospital bills for diagnostics, surgery etc.
Health insurance or Critical Illness cover- are you confused between both of them and do not know what to buy and what not to buy? Well, both of them are insurance products but differ with each other when it comes to their basic features.
Critical illness cover, as the name suggests, is the policy which will cover only the pre-defined critical illness such as cancer, blindness, multiple sclerosis, kidney failure, heart attack, diabetes and other life threatening diseases and not other general disorders or health conditions. Whereas, health insurance provides wide Coverage in terms of hospital and medical bills and cashless facilities for various ailments and even accidents but does not cover specific critical illness. It may cover OPD charges or Hospitalization due to critical illness but only to certain level.
Health policy is purchased as an annual contract and need to be renewed every year. It depends on the Insured whether he wants to continue with the same policy, convert it through portability, or do not want to continue it. Other than this, health policy ceases to exist when sum Assured is completely done in. On the other side, critical illness policy is also bought for the Term of one or two years, but once the lump sum amount of Sum Assured is paid to the insured on first diagnosis of the critical illness, the policy comes to an end then and there.
As mentioned before, a health policy can reimburse hospitalization expenses, medical bills and other treatment-related expenses and provides a sought after benefit of cashless treatment in the Network Hospitals empanelled with the insurer. And, when it comes to critical illness policy, only the treatment related to listed critical illnesses under the policy is covered and it completely depends on the insured how he wants to spend the lump sum amount of sum assured.
The insured has to wait for period of 30 days after commencing the policy to avail the coverage-related benefits. For the time being, only the expenses incurred on the treatment due to Accident is covered. Furthermore, if you want to add Pre-existing ailment to your health policy you need to wait for 1 to 4 years of period. While in critical illness policy, the Waiting Period for listed critical illness is of 3-4 months and you can avail the coverage only after this period.
Health insurance is suggested for different age groups. Moreover, earlier it is bought the better it is, as it will save your money later when you actually require health policy. Whereas critical illness cover is suggested for those who have crossed the age of 35 and even earlier for those who have family history of critical illness or have the chances of getting diagnosed with one.
Critical illness benefit policy or health policy, both of them have their own benefits and neither of them can be put on top. It is your preferences that matters and health policy will prove to be useful as per your individual health condition. Therefore, get health insurance that fits with your needs well. If you are yearning for complete coverage, buy health policy and add critical illness rider to it instead of buying them individually and spending double insurance Premium on them.