Many of us get confused between health insurance and critical illness. Do you know the difference between these insurances? Few Pointers to explain this:
Benefit
Health Insurance covers hospitalisation expenses where the stay in the hospital is at least for 24 hours and more. Though there are some day care procedures too.
Critical illness covers specified major ailments such as stroke, cancer, first heart attack, etc. basis the first diagnosis of the same
Expenses
Health insurance pays for eligible medical expenses such as room rent, doctor consultation, nursing charges, etc on an actual basis
Critical illness pays a lump sum cover amount irrespective of the actual expenses basis the submission of the first diagnosis report
Waiting/survival Period
There is an initial waiting period of 30 days in the health insurance to avail the benefits in the policy.
There is a survival period of 15 to 30 days in critical illness insurance post-diagnosis to avail of the claim benefit.
Claim documents
You need to submit the actual bills, doctor’s prescription, discharge card, etc. for claims under the health insurance policy
While, in critical illness, there is no need to submit the actual medical bills for claim purposes.
Purpose
The whole purpose of health insurance is to save-out of-pocket expenses should a medical emergency arise.
The critical illness cover amount received can be used for treatment costs, paying off debt, household expenses, etc.
Hope the above points have helped you understand the difference between the two insurances and the different purpose they serve and the unique benefits that they offer.
Manju Dhake is the VP- Insurance of 1finance
