What Is Critical Illness Cover & How Does It Different From Health Insurance?
You might have heard enough about health insurance plans, but do you know what is critical illness cover? If you are not able to remember where you have heard the term “Critical illness Cover” then let me remind you that this is a feature common for term insurance plan. You can check out what is a term insurance plan here.
In this article I will share about both critical illness cover and also health insurance first. And then explain how come both are different and also required for your life.
What is a Health Insurance Plan?
A health insurance plan mainly cover the medical expenses and hospitalization benefits during any major surgery or medical emergency covered by your insurance policy terms. Basically this is a type of insurance where mainly medical expenses are covered.
As per typical health insurance policy, you will get cashless benefits in case of medical emergency. One can also reimburse the medical bills after discharge. Most of the health insurance plans need minimum 24 hours of hospitalization to avail the policy benefit. Generally one can also claim the pre-hospitalization & post-hospitalization medical bills under a health insurance plan.
What is Critical illness cover?
Critical illness cover or Critical illness insurance is a feature mainly linked with a insurance plan. In fact there are dedicated insurance plans to handle critical illness cover. Now what is this critical illness or what are the diseases covered under critical illness? This is an insurance rider you might have noticed for many new term plans in India.
Generally there are some illness which has been diagnosed as life threatening and to cover the risk of such illness this kind of policies or feature is added in insurance plans. Generally this feature is added as an addon feature. E.g. a normal term plan may cover 1 crore in general. But in case death happen due to any of the mentioned critical illness, then one can get additional 1 crore in case subscribed for the critical illness rider of that term plan.
Here is the 34 critical illness which I have discovered while reviewing ICICI iProtect smart online term plan.
- Cancer of specified severity
- First Heart Attack – of Specified Severity
- Open Heart Replacement or Repair of Heart Valves
- Surgery to aorta
- Primary Pulmonary hypertension
- Open Chest CABG
- Chronic Lung Disease
- Chronic liver disease
- Kidney Failure Requiring Regular Dialysis
- Major Organ/ Bone Marrow Transplant
- Apallic Syndrome
- Benign Brain Tumour
- Brain Surgery
- Coma of specified Severity
- Major Head Trauma
- Permanent Paralysis of Limbs
- Stroke resulting in permanent symptoms
- Alzheimer’s Disease
- Motor Neurone Disease with Permanent Symptoms
- Multiple Sclerosis with Persisting Symptoms
- Muscular Dystrophy
- Parkinson’s Disease
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Medullary Cystic Disease
- Systematic lupus Eryth with Renal Involvement
- Major Burns
- Aplastic Anaemia
Health Insurance VS Critical illness Cover
To understand the difference, let me explain with a simple example first. Let’s say Mr. A is a working professional making good money every month. Now in case of an medical emergency Mr. A was admitted to hospital and gone through major surgeries.
Now, if Mr. A had bought health insurance plan they he might have easily taken care of his hospitalization & all medical expenditures with the help of the health plan. But think about a situation, where Mr. A may not be able to work like before or may not continue to work further due to that incident.
Will this health insurance help him to plan his future financial goals? the answer is NO.
In that case, if he would have a term plan with critical illness rider added then he might have get the benefit of a term insurance plan even if he has a health insurance plan. I hope this is a pretty simple to understand.
How To Decide Which One Need To Buy?
Generally health insurance is a must for every individual. But in case your family has any history of any of the critical illness mentioned above then you can go for an insurance plan which will cover critical illness as well. You may buy a pure critical illness insurance plan or go for an additional rider with a payment of little extra premium.
Share your questions or doubts about anything related to insurance here to make the discussion useful for readers.