Compare Mediclaim Policy and critical illness insurance

Posted by kiran singh on June 3rd, 2019

Imagine a situation whereX got a mediclaim policy for himself and was satisfied that he would be secure in times of a medical emergency. One fine day, X suffered from a cardiac arrest and was immediately taken to the hospital. After he recuperated from the heart attack, he was shocked to see that his mediclaim policy provider had rejected the reimbursement of the medical bill of the hospital. In fact, the insurance company contended that it did not cover any critical illness within the ambit of its policy and that a mediclaim policy would only cover the hospitalisation expenses and not the expenses of treatment. Mr. X was taken aback and realised that he should have taken two different policies, i.e., a mediclaim policy and a critical illness insurance. 

Did you learn a lesson from X’s story? We are pretty sure you did.

A mediclaim policy and a critical illness insurance are two very different types of policies and should, in no circumstances, be confused with each other. Each policy is designed and curated for specific purposes and one cannot fit in the role of another.

In this article, we would tell you what a mediclaim policy and a critical illness insurance policy mean and how they differ from each other. We also let you know what all benefits each of the policies have to offer. 

What Is a Mediclaim Policy?

A mediclaim policy or a health insurance, as it is better known, is nothing but an insurance policy that is designed to reimburse or pay the policyholder’s medical bills up to the amount that is assured in the policy document, in the event of a medical contingency. Such policies bear the hospitalisation expenses of the patient/policyholder, so that he/she does not face any financial burden during a medical emergency. 

Benefits of a Mediclaim Policy

It is well known that a mediclaim policy helps you avoid unnecessary financial problems during times of a medical need. In fact, certain mediclaim policies come with riders that enhance your utility of your policy.

The various benefits that a mediclaim policy offers are:

Free Look Period

A mediclaim policy offers you an option to cancel the policy if you are not satisfied with its terms and conditions or its offerings within a few days of its purchase. Such an option gives you the leverage to decide your choice even after you have completed the transaction. 

Helps Avoid Loans

Since the insurance provider in a mediclaim policy takes the burden of repaying you for the medical expenses, it helps you avoid taking any loan to cover such costs. In fact, a mediclaim policy can be availed by paying a nominal premium to the insurance provider on flexible terms, having due regard to the terms of the mediclaim policy.

Regular Medical Checkups

A person holding a mediclaim policy does not have to worry about paying high bills while doing a regular health checkup. In fact, most mediclaim policies offer their customers regular health checkups without the latter having to pay any amount.

Tax Benefits

The amount paid as premium towards the mediclaim policy is deductible under Section 80C of the Income Tax Act, 1961 which is a breather from having to pay a huge amount in the form of taxes at the end of every financial year. 

Cashless Facility

Certain mediclaim policies offer a cashless system to its policyholders. In such a system, the hospital directly pays the medical expenses to the hospital without the policyholder having to pay for the same first. Such a system facilitates quick payment without having to first withdraw cash and then visit the doctor.

What Is a Critical Illness Insurance?

A critical illness insurance policy lists out several critical diseases for which it provides the treatment cost to the policyholder, in accordance with the cover amount. Examples of such illnesses are heart attack, paralysis, kidney failure, organ transplantation, etc. The amount is offered to the policyholder in lump sum as soon as the person affected, i.e. the policyholder is diagnosed with the illness.

Benefits of a Critical Illness Insurance

A critical illness insurance is one of the soundest financial protections that a person can make against life threatening diseases. It has enormous benefits that protect you in times of a medical crisis.

High Insurance Cover

Most critical illness insurance policies offer a high life cover at an affordable premium plan. Such a cover amount is enough to compensate for the mounting costs that one incurs while getting treated for a critical illness. A critical illness insurance policy definitely makes you financially secure and independent. 

Tax Benefit

Buying a critical illness insurance policy makes you eligible for tax benefits under Section 80C as well as Section 80D of the Income Tax Act, 1961, which is another great benefit of investing in the same.

Does Not Disturb Your Savings

One of the major benefits that a critical illness insurance policy brings along with it is that the policyholder who has suffered from a critical illness does not have to spend anything from his/her hard earned savings. The rising costs of medical treatment for illnesses that are life threatening is not unknown to us. In such a situation, a critical illness insurance helps you cover the cost of treatment, thus preventing you from a major financial setback.

Renewability

Critical illness insurance policies that come from reputed insurance companies offer the option of renewal to every policyholder. This means that you can renew your policy period after the former period ends, without having to go through the process of buying a new one all over again. Not only does it save time, it also saves a lot of documentation and other related processes.

Final Note

A mediclaim policy, as well as a critical illness insurance policy, has its own benefits. It would be in your best interest to buy both these policies so as to secure yourself completely during a medical crisis. In case you, too, are looking to buy one of such policies, you can visit Coverfox.com that compares the best Mediclaim policy and critical illness insurance policies. Compare a range of different policies to your satisfaction before you zero in on a particular one. 

So, what are you waiting for? Buy an insurance policy today and live your life without financial worries