Health is an asset hence it needs to be covered. Keeping this in mind any people buy comprehensive health insurance policy and think that it will cover all health-related contingencies and ignore critical illness cover. People often say that when they have comprehensive health insurance plan or a group health insurance from their employer, then why to buy a critical illness plan separately.
But what if you are diagnosed with a critical illness that requires specialised care while your health insurance has a limit on doctor’s fees, and thus won’t cover the full cost of treatment? Or there is a cap on specific expenses such as on medicines, intensive care unit (ICU) or prosthetic and your bill is more than what the insurer will pay. In such cases, you will have no option but to pay from your own pocket.
A critical illness can also mean loss of income, total or partial disability and change in lifestyle. The best way to get over these shortcomings is a critical illness plan.
Both health insurance and critical illness plan provide benefits in different ways. While an indemnity policy covers for hospitalisation, a critical illness plan pays a lump sum on diagnosis of critical illness listed in the policy document. Critical illness plans are fixed benefit plans. One gets the full sum insured irrespective of whether one is hospitalised or not or what the treatment expenses are.
You can use this lump sum amount for various purposes such as to pay for expensive treatments or recuperation aids, make up for loss of income or pay off for debts. Buying critical illness insurance plan is also a cheaper option than an indemnity plan.
A comprehensive health insurance plan covers a wide range of risks and a critical illness plan covers specific situations.
So, critical illness plan is a supplement to your health insurance. A combination of both can give a good balance between pricing and coverage. However, you should first evaluate and compare all the plans available in the market before zeroing on any plan. Choose the best that suits your needs.