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Home » Difference between medical and critical illness insurance

What is the difference between medical and critical illness insurance?

    Learn more about medical and critical illness insurance to understand why do you need both of these for a comprehensive protection of your future.

    “Is medical insurance different from critical illness insurance? Is it not the same thing?”

    Most of us get confused and assume both medical and critical illness insurance are the same because they are both marketed to cover hospitalisation bills. Let us show you how different they are and how you can utilise them to make the most out of your insurance policies.

    Medical and critical illness insurance serve different functions

    How can these two insurance provide you with maximum coverage in different aspects of life under the same conditions?

    Consider this: You have kidney failure and you’re required to undergo surgery for a transplant. Once you have undergone the surgery, you will need to undergo treatments during recovery and you won’t be able to go back to work but you still have loans and bills to pay.

    Your medical insurance will cover the medical bills of the transplant & post-operations treatments.

    Your critical illness insurance will act as your income replacement during recovery.

    A medical and critical illness insurance covers different aspects of your healthcare journey from diagnosis to full recovery.

    How do claims work?

    Medical insurance is usually paid directly from the insurer to the hospitals for hospitalisation & medical costs only while critical illness insurance pays in the form of a lump sum to the insured upon diagnosis so you can decide how you want to utilise the fund.

    Most critical illness insurance covers a minimum of 36 illnesses up to 160 illnesses depending on your policy that you can read more about here.

    Who it benefits the most?

    Medical insurance benefits the policyholder as it will help pay medical bills and medication. This usually includes YOUR hospitalization, pre/post hospitalization expenses, follow-up treatment and day care procedures.

    Critical illness insurance benefits the policyholder and their dependents, covering things outside medical bills such as house loans to keep a roof over their head or day-to-day expenses.

    How long does the coverage last?

    Both of these policies can cover up to 80 years old with the insured sum of your choice depending on your budget.

    Get them both early !

    With both of these insurance together, you’re guaranteed to have a comprehensive coverage for you to have proper financial security if something unfortunate like critical illness were to happen to you. The catch is that you have to get these young in order to be 100% covered at a low premium so planning ahead means better coverage at a lower price.

    Do you have more insurance questions that you need answered? Talk to our advisors at Bjak free or charge available online 24/7.

    Sources :
    AIA , Redcover