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Health Insurance

How critical illness cover with health insurance differs from critical illness cover with life insurance?

“A critical illness cover is a feature that enhances the scope of insurance coverage, whether it is health insurance or life insurance.”

Critical illness cover gives a lump-sum amount that helps in taking care of high medical costs. Further, if you are left with an excess amount, you can then be able to utilise it to take care of other liabilities like loans. Critical illness cover includes cancer, heart/kidney illnesses, among others. 

How critical illness cover with health insurance differs from critical illness cover with life insurance?

You can purchase more than one critical illness cover with life insurance and health insurance, and each of the covers will pay for the critical illness. Here is how

Critical illness cover with life insurance

You can purchase a critical illness cover with life insurance either as an independent cover or as a rider. There are two kinds of essential riders of illness wherein the premium amount differs. The two types of riders are:

  1. Extra Benefit: The critical illness sum assured is added as an extra cover which implies that in addition to the basic sum assured an additional critical illness sum will be paid. In this type of cover, the life insurance proceeds with the same sum assured regardless of whether the critical illness rider is utilised.
  1. Enhanced Benefit: For this situation, the advantage is alternatively underlying with the existing plan. The sum assured of critical illness is reduced from the life insurance coverage amount and is paid when a valid claim is made. After this, the life insurance plan proceeds with the decreased sum assured to the degree of the critical illness sum assured.

Independent critical illness cover 

At the point when you purchase independent critical illness cover from a life insurer, the life insurance will give monetary security to ‘your family’. While the independent critical illness cover provides you with financial security against several life-threatening medical issues such as kidney failure and cancer. Cardiovascular illness and more.

What you ought to do 

Hospitalisation costs are not shrouded in the event of a critical illness cover with life insurance. You should likewise analyse the expenses of critical illness rider versus an independent CI cover. Specialists state that when you purchase independent cover, you need to comprehend that both cover different risks – the danger of biting the dust and the danger of getting fundamentally sick, where you are alive yet need cash to get the best treatment. Hence, one should preferably not mistake between death benefits and critical illness cover as separate events. 

Critical illness cover with health insurance

The critical illness cover with health insurance pays the sum insured in lump-sum if you are diagnosed with a critical ailment. Critical illness covers come either as standalone policies or riders to the base health insurance plan.

What you should opt for – Rider or standalone cover?

Experts bring up that critical illness riders will indicate the number of critical illnesses covered, the waiting and survival period, and the lump-sum amount payable. Suppose the insured is diagnosed with a critical illness and gets hospitalised for treatment. In that case, he or she can utilise both the arrangements – critical illness and health cover to save the general hospitalisation cost. This implies that the insured will get the lump-sum amount for treatment as part of the critical illness cover upon diagnosis.

Under the basic health insurance policy, the insured will get the reimbursement of hospitalisation expenses by submitting all the required medical bills to the insurance providers. Likewise, it would be best if you realised that a standalone critical illness plan can be ported to different insurers, but critical illness rider cannot.

How it makes a difference 

Purchasing critical illness cover whether it is a rider or a standalone policy with a customary medical coverage plan gives a pre-defined lump-sum amount for the diagnosed critical illness. Likewise, the hospitalisation costs for treating the critical disease are additionally covered. This guarantees full insurance cover even after a diagnosis of the disease.

What should opt for Critical illness cover with life insurance or health insurance? 

Financial experts recommend that looking at the growing number of critical illnesses and medical expenses related to it even after finding the disease, individuals need to pick independent critical illness policy over and above their medical coverage. The critical illness cover guarantees that a family’s investment funds are not dissolved because of hospitalisation expenses and treatment. So, it is advised that you get an independent CI policy alongside a medical coverage policy.

While it seems that critical illness plans are a perfect option to cover your medical expenses, but you need to remember that it is not a replacement for a regular health insurance policy. Specialists also exhort that while purchasing a critical illness cover, you should search for several critical illness covers since various insurers cover different critical illnesses in the policies.

You can visit to understand both the concepts in a better way.

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