• 3 AUG 2017

    Difference Between Mediclaim And Critical Illness Plan



    Our hectic lifestyles and schedules give us very little time to focus on the most precious thing in our Lives! Our Health! Hectic lifestyles have increased the chances of falling ill. The rising occurrences of illness lead to increasing hospital expenses. This leaves us with a sour taste in our mouth (thanks to the medicines) and huge gaping holes in our pockets.

     Many of us are covered by a Mediclaim - that either our employers provide or cover that we may have personally purchased from the available plans in the market. If you are covered under the Mediclaim provided by your employer, the amount of coverage is based on your designation and terms of employment.  This may or may not meet the expenses you incur for medical treatment. On the other hand, if you have purchased a plan personally from the market, you must be aware that it is an expensive proposition with a predefined cover limit. The benefits are that a Mediclaim provides you with a cashless facility with the option to claim reimbursements against your hospital bills.

    But God forbid what if you suffer from a critical illness? A Critical Illness drains one monetarily, physically and emotionally. At such junctures of life, you should be focussed on fighting the illness and not your finances.  

     Your existing Mediclaim may help you to reimburse only the amount you spent on hospitalization but most critical illnesses need periodic and future treatments. For example, chronic kidney failure needs dialysis on a routine basis.

    Also, you may want to undergo medical treatments abroad. Most mediclaim plans do not offer this in their plans and schemes. How will you cope with these costs?

    A Critical illness may also lead to loss of regular income and this may affect your loved ones if you’re not sufficiently prepared. You may have to pay, loans EMIs, school fees, daily household expenses that mediclaim will not cover. Your inability to bear day-to-day expenses and medical costs will cause a great burden on your family.

    But if you make the right choices your illness need not be an impediment to your family’s future and security. A ‘Critical Illness Plan’ can help you cope up with such expenses.

    We have already discussed how mediclaim only reimburses your actual medical expenses. A Critical Illness Plan on other hand provides a fixed lump sum amount, on the diagnosis of any of the pre-specified critical illnesses irrespective of the expenses borne by you. On submission of proof of diagnosis, the cover provides you with a substantial lump sum that can be used to offset a loss of income and daily expenses and so, will provide relief in the trying times to come. It is important to understand that while a person needs to buy health insurance to help him pay hospital bills, the objective for buying a critical illness policy is to compensate and support the insured for any hardships and monetary losses which are caused due to such critical illnesses.

    You should also note that critical illness plans offer higher sum assured at a lower premium than regular health plans. The lump sum payout from a Critical Illness Plan has no defined end use. You are free to use it the way you wish to - you can use the amount for an advanced treatment abroad, pay your EMIs and household expenses or anything you deem appropriate.

    It is very important to understand that it smarter to buy both a health insurance and a critical illness policy. Both are necessary and serve different purposes in aiding you at the time of need. In fact, both types of policies complement each other and the sooner you buy them – the better! One helps you pay hospital bills and other help you cope up with the loss of income and the increasing financial burden rising due to critical illnesses.


    Plan for a rainy day by getting your umbrellas today!



    • Leave a Reply
  • 24 DEC. 2018

    Reasons why life insurance makes a perfect Christmas Gift!

    You may have gifted accessories, clothes, and even gadgets in the past but how about gifting a promise that secures your loved ones forever? Here’s how a life insurance plan can serve as a perfect gift this Christmas

    read more
Understand your insurance needs in few minutes

just give us a miss call 022 6611 6028


request a call back

for a scheduled call back, please share:

contact us

branch locator

Please enter your mobile number

enter your contact details

is there an issue? let us help you!

nothing to worry.

just fill in these details. we’ll help you out.

check status


Don’t wait. Complete your application by entering your transaction id.