When it comes to protecting our health and financial health, most people first think of medical insurance plans. Well, indeed, these plans cover doctor office visits, hospitalisation, surgeries, and prescription drugs. But there's another type of protection that's equally crucial,yet underappreciated: critical illness insurance.

In this entry, we're going to dig in on the reasons why critical illness insurance is a necessity as part of your health strategy, in combination with your medical insurance.. With a know-how of these two insurance formats, you are assured that you're completely well-prepared when facing life's unpredictable health detours.

What Are Medical Insurance Plans?

Let's begin with medical insurance plans. These are meant to take care of the day-to-day cost of healthcare, such as doctor consultations, medications, and hospitalisations. Based on the plan, you may also receive coverage for more advanced treatments or surgeries. Medical Insurance is totally necessary for taking care of routine healthcare, and it can be a savior when there is some unexpected healthcare problem.

Usually, these Plans are designed to cover:

  • Hospitalisation
  • Emergency services and ambulance fees
  • Prescription drugs
  • Preventive care and screenings

The beauty of these plans is that they enable you to cope with common, less severe illnesses without breaking your bank. Yet, there are loopholes where some life-threatening diseases or scenarios may need greater financial assistance.

What Is Critical Illness Insurance?

While medical insurance plans are fine for paying for medical treatments, they tend to be lacking when major, life-altering health conditions are involved. That's where critical illness coverage is needed. It's meant to pay for the financial cost of serious, frequently catastrophic, health problems such as cancer, heart attacks, strokes, and kidney failure.

In contrast to medical insurance plans, which cover medical charges and treatment fees, critical illness coverage offers a lump sum when you contract one of the covered illnesses. You can use this cash for whatever you require – from medical treatments excluded by your medical insurance, to covering household expenses while you recuperate, or substituting lost earnings if you cannot go to work.

The following is a quick summary of what critical illness coverage covers:

  • Lump-sum payout at diagnosis of a covered sickness.
  • Freedom to use the payout for medical and non-medical costs.
  • Coverage for sicknesses not entirely covered by the standard plans.

This payout can be a lifesaver in easing the emotional and financial burden usually associated with a serious sickness.

Why Do You Need Both Kinds of Insurance?

A common question is also, if I have a medical insurance plan, then why do I need critical illness coverage? Isn't Medical Insurance already paying for most of the treatment expenses of severe illnesses, anyway? Though these plans are very vital, they do not always pay for the complete set of expenses involved in serious health conditions. Let's see how:

1. The Gaps in Coverage

While these plans do include hospital visits, doctor visits, and some treatment, they have exclusions and limitations. They may not cover:

  • Out-of-pocket costs such as deductibles, co-pays, or non-covered treatment.
  • Living costs, such as rent or mortgage payments, are when you can't work because of illness.
  • Alternative or experimental treatments that aren't covered by standard health insurance.

That's where critical illness coverage comes in. It provides you with the financial independence to pay for these extra costs that can quickly add up when dealing with a severe health emergency.

2. Financial Protection During Recovery

When one is diagnosed with a serious illness, it's not only about getting medical care. It's also about missing work, possibly rehabilitating, and adapting your lifestyle. These plans generally do not reimburse for lost income or pay for the recovery period that could last for years.

This is where critical illness coverage becomes priceless. The lump-sum benefit from a critical illness insurance policy can cover income losses, defray further care costs, or even assist with home modifications to support recovery requirements. That way, you can simply concentrate on healing rather than worrying about bills.

3. The Flexibility You Need

Yet another good thing about critical illness coverage is how flexible it is. Unlike medical insurance, which tends to confine you to a particular network of doctors and hospitals, critical illness coverage gives you a lump sum that you can spend however you wish. Whether that's going overseas for specialised care, employing a caregiver, or paying bills at home, the choice is yours.

This liberty is most important when handling a serious medical condition. The ability to spend the payout on whatever you like means you can concentrate on the most important thing: getting better.

How Do These Two Work Together?

When taken together, medical insurance plans and critical illness coverage form an extensive insurance safety net. Medical insurance handles daily medical bills and hospitalisation, while critical illness coverage takes care of the financial buffer for treatments beyond the normal. 

When combined, they can:

  • Provide full coverage for short-term and long-term health requirements.
  • Reduce financial burden by taking care of non-medical charges and income loss.
  • Provide peace of mind in the knowledge that you are equipped with the means to address both timely and unforeseen expenses.

Imagine medical insurance as the staple of your healthcare protection, extending the support you need for general medical requirements. Critical illness insurance, on the contrary, is the parachute that saves you when life blindsides you, such as severe sickness or accidents.

End Note

Though medical insurance is important for paying for everyday healthcare expenses, they don't cover the full financial burden of serious diseases. Critical illness insurance is a safety net that offers a lump-sum payment to pay for non-medical out-of-pocket costs and lost earnings while you recover.

Medical insurance and critical illness coverage together provide total protection, keeping you prepared for routine healthcare expenses and sudden health emergencies.

For individuals looking for dependable coverage, Niva Bupa provides customisable health insurance plans to offer peace of mind in hard times, ensuring you're ready for whatever health issues come your way.