Why to Buy Health Insurance and Critical Illness Policy Separately?

There is no doubt that having a health insurance plan is a must in today’s time. With the rise of lifestyle diseases, the cost of medical care is also rising. A health insurance plan provides you with a financial safety net. However, your health insurance might not cover all the life-threatening and critical diseases. The sum assured of the health insurance policy will not cover the long-term expenses that a critical illness may need. Hence it’s important to buy a health insurance policy as well as a critical illness policy.

Indeed, there is a difference between health insurance and critical illness insurance. To understand why to buy a health insurance and critical illness policy separately, keep on reading:

1. Life-threatening diseases: A medical insurance policy will cover your hospitalization and OPD expenses. A critical illness insurance policy will cover a lump-sum amount and has nothing to do with hospitalization expenses. But it will cover all the listed critical illnesses. For critical illnesses like cancer, end-stage kidney failure, multiple sclerosis and stroke, you will need a critical illness plan. The critical illness policyholder will get a lump sum amount if the insured person is diagnosed with a life-threatening disease covered under the policy.
2. Coverage: Another significant difference between critical illness and health insurance plans surrounds the coverage provided. The scope of coverage is different for the two types of policies. A simple medical insurance policy covers a variety of diseases as well as accidents. It may also cover pre-existing illnesses after the waiting period. However, a critical illness plan will only cover a specific list of diseases.
3. Premium: The premium of a health insurance plan is higher than a critical illness plan. You can use your medical insurance plan multiple times and for various medical conditions. Some policies also offer reinstatement of sum insured by paying a minimal additional amount. While a critical illness plan covers only pre-determined medical conditions, a health insurance policy covers hospitalization & OPD expenses as well. Also, under critical illness policy, you can make a claim only once during the lifetime of the insured.
4. Non-medical expenses:The coverage of non-medical expenses is the fourth and final factor of difference between health insurance and critical illness cover. A health insurance policy will only reimburse you the hospitalization expenses and there will be a limit depending upon the sum insured. A critical illness plan will give you the lump-sum amount irrespective of the hospitalization expenses. A critical illness can adversely affect your earning capacity. You can use the lump sum amount for paying off debts, managing household expenses and other non-medical expenses.
Conclusion

As is apparent, there are several crucial differences between health insurance and critical illness insurance. While buying a health insurance policy can help you meet hospitalization expenses when you fall sick or meet with an accident, a critical illness policy can help you meet the huge financial expenses that may arise out of a life-threatening and critical illness. Both the policies are designed to cater to different needs. Having the two can help you safeguard your financial future.

Protect your financial future with SBI General

We, at SBI General Insurance, offer Health Insurance Policy as well as Critical Illness Plan . The two plans together will help protect your financial future. Health Insurance Policy offers myriad benefits including wide coverage, cashless facility and family floater option. Critical Illness Policy covers 13 critical illnesses with sum Insured up to Rs 50,00,000. Buy the two policies today and have a strong financial safety net for yourself and your family.

*Disclaimer

SBI General Insurance Company Limited I Corporate & Registered Office: 'Natraj', 301, Junction of Western Express Highway & Andheri - Kurla Road, Andheri (East), Mumbai - 400 069. | The information in the advertisement is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale. * ‘Tax benefits are subject to changes in tax laws’ I 'For SBI General Insurance Company Limited IRDAI Reg. No. 144 dated 15/12/2009 | CIN: U66000MH2009PLC190546 | SBI Logo displayed belongs to State Bank of India and used by SBI General Insurance Co. Ltd. under license.| UIN: SBIHLIP11004V011011 | ADDIG/20-21/AUG/656