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Valuable Benefits Of A Critical Illness Cover

By Author: easypolicy
Total Articles: 20

p>Most people are mistaken to believe that if they have purchased a health insurance cover, they are not required to get a critical illness cover. It is important that people are not misled.

But before we discuss the valuable benefits of a critical illness cover, let’s first understand the difference between a health insurance cover and a critical insurance cover.


Difference between a Health Insurance Cover and Critical Illness Cover

Like a health insurance cover, this cover is also to be renewed every year and requires you to pay annual premium, which qualify for tax benefits under section 80D. However, there are important differences.

A health insurance policy covers you for the treatment of any illness that is not excluded under the terms of the policy, while in an illness policy you would be covered on diagnosis or pre specified illnesses like stroke, paralysis, kidney failure, cancer or heart attack.

In this type of cover, you would be offered a lump sum amount when you are diagnosed with a critical illness which is under the scope of the policy, while under a health insurance plan, you would be reimbursed for the actual hospitalization costs incurred on the treatment (includes pre and post hospitalization costs).

A health insurance policy remains in force, even after you seek a claim, but in most of the illness policy, the insurance cover is terminated, once the lump sum payment for either of the illness covered under the policy is paid for.

Critical Illness Cover - Benefits

You would have by now got a sense on why a cover is required over and above the health insurance cover. An illness cover is basically intended to ensure that you are not only compensated for the treatment cost, but also for subsequent expenses like debts pay off, loss of income and recuperation aids etc. in form of a lump sum amount.

So simply speaking, this cover would help you overcome the financial crisis or say it would make sure that your financial planning does not go hay wire while you are lying ill on account of an illness. The financial consequences are grave and extend beyond the financial liability related to hospitalization. Most illnesses would lead the patient away from their job or business for a considerable amount of time and this can really mess up a person’s financial situation. This cover provides you with a lump sum payment to help you deal with the associated costs and risks of a critical illness.

So while you buy health policy, do not forget about getting an illness cover. As there are many medical insurance companies that offer this plan, it is important that you do an online comparison and buy a plan that maximizes the benefits at the lowest possible cost.

Compare health insurance plans, mediclaim policy, cashless health insurance policies, Individual health insurance and family floater plans from best insurance companies in India.

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