A critical health crisis is mostly unpredictable but has the power to cause a financial upheaval in anyone’s life. The current COVID-19 pandemic has made many people think more about planning for such a crisis. They have realised the importance of buying a mediclaim policy, which mostly covers hospitalisation expenses during the policy period. However, many of them do not know about the lags in a basic mediclaim plan and the need for critical illness insurance.
Most of such policies have various sub-limits and co-pay clauses,making the coverage inadequate in case of a critical illness. Hence, it is crucial to understand the thin differences between mediclaim and critical illness plans. The next step is to buy a critical illness insurance policy to get comprehensive coverage against various life-threatening diseases.
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There are many reasons why buying a mediclaim plan is insufficient to deal with tough times related to a health emergency.
Limited Coverage for Incurred Expenses
Typically, a mediclaim plan is helpful to deal with hospitalisation due to minor surgeries or one-time treatment. The insurance coverage under these plans is limited and is often get exhausted in less time. However, when an individual is diagnosed with a critical illness, like cancer or heart problems, it requires regular medical treatment over a long period.
Think of how a family would pay for the regular expenses if the breadwinner is diagnosed with a severe health problem. For adequate health coverage, it is advisable to buy a critical illness plan. You will get an upfront lumpsum amount upon confirmed diagnosis of a critical illness, which can be used to get the necessary treatment in a hospital of your choice. Similarly, it will act as an income replacement tool for your family until you recover from the illness.
Simplified Claim Settlement Process
Another aspect you would like to consider while buying health cover is the ease of claim settlement. When faced with a health crisis, neither you nor your family would be in a position to follow some complicated process to file a claim. Filing a claim under a mediclaim plan requires you to submit the bills of hospitalisation and medical treatment received. There are two facets that can make things difficult for you even when you have a mediclaim plan:
- You may not have enough funds to pay for the medical expenses upfront and then wait to receive the reimbursement amount later.
- You may lose some medical bills amidst the emotional turmoil.
A critical illness insurance policy makes things easier in this aspect. Firstly, you only require a critical illness diagnosis report to file a claim. Secondly, you will receive a lumpsum amount to be used to pay for the cost of treatment.
Coverage for Accidental Disability
Disability resulting from an unexpected accident is yet another side of life. Ideally, you would want to get the purchased mediclaim plan to cover the same. But what about the loss of income or impaired ability to work resulting from the disability?
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In most cases, mediclaim plans cover the cost of treatment for any accidental disability only, leaving the risk of total or permanent disability unserved. However, you can be on the safe side by buying a critical illness insurance plan for complete protection.
Take the case of critical illness insurance provided under Max Life Critical Illness and Disability Rider. It offers multiple variants that include coverage for Total and Permanent Disability along with critical illness cover. On the occurrence of total disability resulting from an illness or accident during the rider tenure, the insured individual receives the rider sum assured. This benefit is payable based on a valid claim subject to the rider being in force.
Another unique feature of this rider is its wellness benefit. It means you can enjoy a reduced annualised premium with a commitment to stay healthy by maintaining maximum healthy weeks in a year. You may not get such a feature in other critical illness insurance plans.
Get Complete Protection Against Health Problems in the Right Way
Many policy buyers tend to overlook the fine print of the policy at the time of purchase. For instance, you might have purchased mediclaim before without checking various clauses related to the waiting period, co-pay, room-rent limits, and more particularly, policy exclusions. Not knowing these niceties may make you face financial stress in case of a medical emergency. Also, you may end up buying a plan lacking in critical illness insurance and with inadequate coverage.
On the other hand, it definitely makes more sense to avail of the benefits of critical illness plan, including the lumpsum amount payable, ease of claim settlement, to name a few. Make sure you assess your needs carefully before securing your health under a suitable insurance plan.