by Guest » Wed May 20, 2009 10:25 am
I was just wondering should I get critical illness policy or buying health insurance would be sufficient. I need to decide whether I should be investing on both the plans or in just one.
What the critical illness plan would cover that the health policy won't and vice-versa?
Thanks
What the critical illness plan would cover that the health policy won't and vice-versa?
Thanks
Posted: Wed May 20, 2009 12:09 pm Post Subject: Critical Illness vs Health Insurance
Hi, this really depends on your position.
A health insurance plan will pay for both minor and major conditions, and on an ogoing basis as a condition could be present for many years, or indeed a lifetime. Critical Illness however will only pay out for the more serious 'dread diaseases' and you would have to make payout last to cover medical costs.
If you can afford it, a combination of the two work well together, a small critical illness plan will give you funds to do what you lke with if some terrible happens, while your health insurance covers all the day to day costs associated with treatments...
Posted: Wed May 20, 2009 12:50 pm Post Subject:
If you do not have any serious illness, I'd suggest you go for health insurance. With health insurance you can get a wider range of coverage. Check out with the insurance company what they are going to cover. Coverage may differ from one company to another. Go for one that suits your needs. If you have something specific in mind, ask our experts.
Posted: Wed May 20, 2009 02:54 pm Post Subject:
You should also consider whether your family have any heredity diseases. If there is a chance, you can decide on the requirement of critical illness policy. Another factor is your age. It matters a lot when you are more than 45.
Next is your lifestyle. If you are overweight or living in polluted region or have habits like smoking, etc. then you should consider for the that policy. On an average, it is not a must in average health condition. But better the coverage, better is the security. Also, if there will be returns on policy on maturity as the plan may be
Posted: Thu May 21, 2009 02:50 am Post Subject:
Two different animals.
Critical illness insurance policies will pay the insured an agree-upon lump sum benefit upon diagnosis of the covered critical illness, like cancer, HIV, heart, etc. Once the policy pays, it's canceled and the coverage has ended. These policies can be fairly inexpensive compared to the benefit paid. Don't confuse critical illness contracts with "dread" or "specified disease" policies. There are differences.
Health insurance will cover critical illness, but will not (as I'm sure you know) pay any kinds of lump-sum benefits upon diagnosis. Medical expense policies (usually incorrectly termed "health insurance") will pay for, again as I'm sure you know, all sorts of different things, including accidental injuries.
Two separate animals. If you have a concern over critical illness situations, and you could use the lump sum payment, then buy one of those policies. I would NEVER suggest buying this INSTEAD of medical expense coverage. Your medical coverage should absolutely be your first and foremost concern. While the critical illness policy you bought for cancer will pay you if you contract the disease, it won't do diddly for you if you get into a car wreck, are life-flighted to a trauma center, need high-end emergency treatment and surgery and then get stuck in intensive care for a few days. That's gonna cost you $125,000 out of your pocket without medical expense coverage.
So...buy the "health insurance" and then the critical illness insurance if you can afford and truly need it.
BTW- I hate it (!!) when people misuse the term "health insurance." Sorry folks...there ain't much "health insurance" out there anymore, and it's starting to go away. I'm not talking about "uninsured" people and the inability to pay premiums. I'm stating flatly that health insurance is seeing the last of it's days. That's another thread, and if you're curious as to what I mean, let me know!
InsTeacher 8)
Posted: Fri May 22, 2009 09:58 am Post Subject:
Okay then, critical illness insurance is somewhat secondary in importance than the health insurance policies. But don't you think that with the increasing rate of cancer and other life threatening diseases it make more sense to obtain the critical illness policies too?
Posted: Fri May 22, 2009 10:12 am Post Subject: Holistic Approach..
It is advisable to take a more holistic approach to your health insurance needs. No one policy will provide eveything you need, so you should first of all assess what is most important to you, and then look at how best to protect this.
As commented above, you will fnd Health Insurance (Medical) is a worthy #1 due to the sheer scope of what the plan will do for you.
Some critical illness is a good idea if you feel that additional funds to make life changing decisons would be required. Lets not forget Income Protection insurance, if you are unable to work for any extended perod of time, could you afford the premiums on your other insurances, and indeed your lifestyle.
Ideally, a combination of the three will be just right, but as reassuring as it is to have the cover, don't let the cost of paying for it be he thing that finally kills you...
Trying to find the balance is tricky, and the balance will change as your life cycle does, so worth reassessing your needs ever 4 or 5 years as well.
Find a good agent, prepare some questions in advance and do some homework so you know what you are buying...
Posted: Fri May 22, 2009 10:13 am Post Subject:
I think that the lump-sum money that you would get with the critical illness insurance would help you in starting with the expensive treatment. I wouldn't say that one should replace health insurance with critical illness as Teacher has pointed out that critical illness policy would only concentrate on covering for terminal/life threatening diseases. IMO one would be better off by carrying both.
Critical illness insurance policies aren't expensive and it'd help you in staying covered when you are diagnosed with critical illness.
Posted: Fri May 22, 2009 10:19 am Post Subject:
Hey Teacher,
So...buy the "health insurance" and then the critical illness insurance if you can afford and truly need it.
How to determine whether or not you need critical illness insurance?
If you have a history of cancer in your family would you then still be able to buy the critical illness policy?
Posted: Sat May 23, 2009 02:41 am Post Subject:
Hanan, I'm sorry, but this comment is incorrect:
Critical illness insurance is medical insurance
Critical illness contracts are NOT medical insurance. They aren't even insurance. Insurance is an indemnification process, and critical illness policies are not contracts of indemnity. They are what are referred to as "valued contracts." A valued contract is one that pays an agreed upon "value" in the event a covered occurrence happens. In this case the covered event would be the critical illness.
Too many people confuse the word "insurance" and believe that any policy that covers medical expenses of any type is an "insurance policy." Far from it- most policies that cover medical expenses are NOT insurance policies.
InsTeacher 8)
Posted: Sun May 24, 2009 12:00 am Post Subject:
Well i think you should take some plan like health insurance with high returns.If you are a person like driver or a mine or other kind of worjker then you must make a critical insurance plan.
Other wise just take a healthe insurance as it covers both.I think the critical insurance comes with a low amount of money and that too for a good amount.
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