Today’s world is unpredictable, and that is why protecting one’s health is more important than ever in the context of the steadily accelerating rate of life. Given the increasing healthcare costs and the lifestyle diseases that are rapidly becoming endemic, the need for health insurance coverage and critical illness insurance cannot be overstated. These insurance plans do not only serve the aspect of financially protecting an individual and or his/her family, but they also give a sense of security that in the event of an unfortunate occurrence of an ailment, both the policyholder and those who depend on him/her, are fully covered. In today’s blog post, we will be looking at some of the importance of health insurance and critical illness insurance.

Understanding Health Insurance

Health insurance is a policy between a person and an insurance company where the company agrees to pay the cost of the medical expenses of the policyholder in exchange for premiums made by the customers. This often includes expenses relating to hospital and doctor’s fees, surgery bills, prescribed treatments such as medicines, and, in some cases, routine check-ups.

Why health Insurance Plans are Important?

Health insurance acts as an economic buffer which protects from the huge expenses of the treatments. It opens up access to quality healthcare facilities since one is allowed to choose hospitals and clinics from a list of recognized facilities. It is also common to find many plans with cash-less treatment where the insurer pays the hospital expenses for the services provided and the patient is relieved of the financial burden of paying cash upfront.  In addition, premiums paid for health insurance are also tax exempted under certain sections of the Income Tax Act and thus make for a sound investment for health safety as well as monetary safety. 

Understanding Critical Illness Plans

Critical illness insurance is a sub-category of health insurance where the insurance company pays a fixed amount of money compensation if the insured develops any of the critical illnesses as defined in the policy. These illnesses normally include cancer, heart attack, stroke, renal failure and major organ transplants.

Critical illness insurance is a lump-sum pay-out product when one is diagnosed with any critical illness; unlike a standard health insurance cover, which reimburses expenses. This payment can be applied to medical costs altogether and for recovery or household expenditures in general at the time of need.

Why Critical Illness Plans are Important?

Critical illness insurance helps to cater for the huge costs of critical illness which include; long hospitalization, surgeries, and regular follow-up treatments without going bankrupt. Also, it gives benefits on income because, in the event of financial issues due to unemployment, the payment made will be in replacement of that person’s income. Unlike traditional health insurance which can only cater for normal hospitalization expenses, critical illness insurance is an added companion to comprehensive health insurance because it goes further to capture the full expenses that may be incurred in cases of critical diseases.

Difference between Health Insurance and Critical Illness Insurance

There are major differences between health insurance and critical illness insurance. Each of them plays a unique part in providing financial security. Health insurance provides for a lot of areas of medical treatment such as hospitalization, surgeries, and outpatient services among others at times encompassing precautionary measures, thus health insurance is important for day-to-day and emergency treatments. Also,  it usually either settles the money back to the insured or pays the amount straight to the hospital, more often following the terms of the insurance policy, the amount may be higher but the premiums usually average lower and depend on factors such as age, state of health and coverage limit.

On the other hand, critical illness insurance is meant to cater for expenses incurred while suffering from severe ailments for instance cancer, heart attack or even a stroke. At the time of diagnosis, the policy pays the face amount of the policy in one sum which enables the insured to manage the illness financially, and in its progression. Such coverage frequently serves as a supplement to conventional health insurance to provide the most complete protection. Nevertheless, because of the specificity and highly probable high compensation amounts, insurance for critical illness is rather expensive.

Choosing the Right Plans

Selecting the right health and critical illness insurance policies should be based on the thoughtful assessment of the individual lifestyle, needs and financial situations. When it comes to deciding on your critical illness insurance, first assess such parameters as your age, the medical history of your family, and your general health. If the members of your family have critical diseases often, critical illness insurance is vital. It is important to compare many plans and emphatically not choose the first one which comes their way while checking specificities such as what is covered, what is not, how many days they have to wait to seek medical help and, of course, the insurer’s claim settlement ratio. Further, there is a rider or add-on which further improves the coverage offered –like pregnancy-related expenses, intensive care or accidental death benefits. Last but not least, since health needs may also change over time, people must review their insurance plans at least once a year to ensure that the plans fulfil the requirements of the people and provide sufficient security.

Conclusion

In conclusion, having the right insurance plan is important, especially due to uncertain health and medical situations. Health and critical illness insurance are not mere financial products, they are pre-investments on one’s health. These insurance plans guarantee that while they cover all suitable health-related conditions, your only concern is to get well. Therefore, make informed decisions on what best fits your requirements, compare the available plans and make a worthy selection to shield you and your family from life’s adversities.