Many people are of the view that they do not require critical illness cover if they already have a medical insurance policy.
Most of them consider medical insurance and critical illness policy to be interchangeable. Lack of information is the major cause that leads to this folly.
To explain in layman’s term the difference between medical insurance and critical illness is as stark as Post-paid service and pre-paid service.
In critical illness policy, the benefit that will be accorded to you in lieu of the policy is a one-time benefit.
This means that benefit of the policy will have to be used once and in an extreme situation where the cost associated with treatment is very high.
Critical illness policy is particularly suitable to such situations where you will be required to pay a huge sum in a considerably shorter period of time for disease that may not be covered in your medical insurance.
This helps to deal better with the challenges posed by some of the dreaded diseases.
Medical insurance policy covers an individual against the cost of pre and post- hospitalization even if it is for minor illness or injuries (except if it is not covered under the medical insurance policy).
But if the insured is diagnosed with any major disease which may require prolonged hospitalization then critical illness policy will come to the individual’s rescue.
It provides for cost for treatment and subsequent care taking, debts pay off, recuperation aids, loss of income and change in lifestyle in a lump sum amount.
Sans a critical illness policy, you may face a sudden prospect of a financial crisis as the cost of treatment and medication is high.
But thanks to critical illness policy, one gets to meet up all the relevant expenses through its one-time lump sum payment, irrespective of the total cost of the treatment