Health insurance and critical illness policies cater to different needs. Health insurance covers hospitalization and OPD expenses, while critical illness insurance provides a lump sum amount in case of serious illnesses. Having both is essential for financial security and helps reduce the economic burden in your future.
Insurance difference: Health insurance covers only hospitalization and OPD expenses, whereas critical illness insurance provides a lump sum amount for critical illnesses such as cancer, stroke, and end-stage kidney failure. Health insurance premiums are typically higher and allow for multiple claims for various illnesses, while critical illness policies usually provide a one-time payout in a lifetime. Both policies serve different purposes and ensure financial security.
What is Health Insurance?
A health insurance policy covers your hospitalization, surgery, and OPD expenses. This policy can easily cover expenses incurred due to common illnesses or accidental injuries. With the continuous increase in lifestyle-related diseases and medical expenses, this policy has become a b tool for financial security.
However, a health insurance policy does not cover all serious and life-threatening diseases. It may not be sufficient for long-term treatments or expenses incurred due to specific critical illnesses. This is where the need for critical illness insurance arises.
What is Critical Illness Insurance?
A critical illness insurance policy covers only specific serious illnesses. These include life-threatening diseases such as cancer, end-stage kidney failure, multiple sclerosis, and stroke. Under this policy, the policyholder receives a lump sum amount upon being diagnosed with a covered illness, which can be used for non-medical needs such as household expenses, debt repayment, or family financial support, in addition to hospital expenses.
Difference Between Health Insurance and Critical Illness Insurance
There are some key differences between health insurance and critical illness insurance. Health insurance provides coverage for a wide range of illnesses and accidents, and multiple claims can be made. In contrast, a critical illness policy covers only a limited number of diseases and typically allows for only one claim in a lifetime.
There is also a difference in terms of premium. Health insurance premiums may be higher compared to critical illness policies. However, considering the high financial burden associated with serious illnesses, critical illness policies also prove to be extremely important.
Protection for Non-Medical Expenses
A serious illness affects not only health but also earnings and the financial situation of the family. Health insurance only covers the money spent in the hospital, but critical illness insurance provides a lump sum amount. This amount can be used for the family's daily needs, debt repayment, and other expenses. In this way, the combination of both policies is essential for financial security.
Why is it Important to Have Both?
Health insurance and critical illness insurance both serve different needs. Health insurance provides protection for general and accidental illness expenses, while critical illness insurance reduces the heavy expenses incurred due to serious illnesses. Having both is considered essential for financial planning and future security.
