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Heath Insurance or Critical Illness Cover – Which One to Buy ?

Heath Insurance or Critical Illness Cover – Which One to Buy ?

India Blooms News Service | @indiablooms | 26 Feb 2018, 12:09 pm

We all feel protective for the health of our near and dear ones. We always want to make sure that they livea hale and hearty life. However, life is uncertain, and even to the best of our intentions, we cannot control certain health situations from affecting our lives emotionally. However, we can ensure thatwe avail the best treatment available making no compromise, even when the treatment costs are very high. Also, our financial savings and goals are not impacted in anyway.

So, how do we ensure that?

There are two insurance plans which can help you ensure a minimal financial impact when faced with health uncertainties:

  • Health Insurance
  • Critical Illness Insurance Plans

A health insurance policy is a comprehensive policy that covers hospitalisation expenses. On the other hand, a critical illness insurance covers life-threatening ailments like cancer, kidney failure, heart attack, etc. There are various general insurance companies and standalone health insurers which offer health insurance policies. However, to buy critical illness insurance, you must approach any of the life insurance companies in India. 

Is Health Insurance NotEnough?

Health insurance can take care of significant treatment-related expenses,if the illness requires hospitalisation. However, many life-threatening diseases like cancer do not needin-patient treatment throughout. In such case, critical illness insurance becomes the umbrella for the patient. Some of the major critical illnesses in India (see figure) demand huge financial support even if they are detected at an early stage.

The adequacy of a critical cover depends on the features and conditions when it will come into effect. It is like the airbags in a car.Theymust open just in time if they are to save passengers’ lives. If they open a little late, they may as well be useless. Thus, health and critical illness insurance plans complement each other when it comes to taking care of your healthcare costs.

Published on Jul 12, 2016Published on Jul 12, 2016

Why buy a Separate Cancer Insurance Plan?

Cancer Treatment Cost is High
The line of treatment usually depends on the tumour size. A patient even after early stage detection may have to undergo a surgery followed by chemo or radiotherapy or maybe vice versa. One session of chemo or radiotherapy may cost anywhere between Rs. 75,000 to Rs. 80,000. And a patient may need 10 to 15 such sessions to be cancer free, that sums up to a total cost of Rs. 8 to 10 lakhs.

While health insurance can cover the cost of surgery (whether performed before or after chemo), it doesn’t cover the cost of chemo/radiotherapy.

Since the patient cannotwork while the treatment is going on, the household expenses need support.Thus, a separate cancer cover becomes an essential piece in your armour against health contingencies a fixed amount is paid at the time of claim.

Covers All Stages
A health insurance plan only covers the actual medical expenses incurred during the treatment. Here the coverage is restricted to hospital expenditure only. However, a cancer insurance policy covers all stages of cancers, which include pre-stage, early stage and advanced stage.

No Exclusions
There are no exclusions related to cancer insurance plan. The insurance plan comes into effect as soon as cancer is diagnosed, irrespective of itsstage.

Payout Benefits
While a health insurer makes payout on the basis of actual medical expenditure only,cancer insurance offers different payout options as per the stage of cancer. In case of early-stage diagnosis, part of sum assured is paid, and the policy continues. In the advanced stage of cancer, the policyholder is entitled to 100% lump sum benefit of the sum insured. Few insurers also offer an annual income, usually @10% of the total sum insured for next few years to the policyholder.

Documents Required
Under health insurance, it is necessary to submit medical bills for cashless treatment or reimbursement. However, in cancer insurance, a payout is made as soon as the policyholder is diagnosed with cancer. It means, without medical bills, the insurer makes a payout.

Which Is Better: Health Insurance or Cancer Insurance Plan?
Both the plans are different and therefore, one insurance plan can’t be a substitute of the other. While a health insurance plan is useful to foot hospitalisation costs, a cancer insurance is required to shield your finances from cancer and cover loss of income.
Buying both the insurance plans is necessary to get wide coverage and secure your future against unforeseen medical emergencies.

Where to Buy Cancer Insurance Plan?
Life Insurance companies offer both cancer and critical illness covers.While the critical cover can be availed as an addition (rider) to your basic life insurance plan the cancer cover is available as a standalone plan. For instance, if you avail a term insurance cover of Rs. 1 crore you can add a critical illness rider of Rs. 50 lakhs and buy a separate cancer cover of Rs. 50 lakhs.

Thus, prepare a foolproof contingency plan with life insurance, critical illness and cancer insurance covers.

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