While health insurance covers medical expenses for various situations, it generally does not include personal accident and critical illness insurance. Personal accident insurance covers accidental injuries and provides compensation in case of any mishaps. Critical illness cover provides a lump sum payout upon diagnosis of specific life-threatening diseases. Each policy has its advantages and limitations. Thus, you need to take time and analyse your requirements to choose the best applicable one.
What is Accident Cover in Health Insurance?
Standard health insurance policies do not include personal accident coverage. Therefore, you must opt for a personal accident insurance plan to get coverage.
Personal accident insurance is a form of insurance that covers the costs or damages caused by a traffic accident. This type of policy offers compensation in the event of the insured’s permanent total disability or demise resulting from a road accident. You might want to contemplate purchasing a personal accident insurance policy for various reasons. Some benefits of personal accident cover include coverage for hospitalisation expenses, accidental death and disability, ensuring financial security for your loved ones, as well as worldwide coverage.
You can opt for coverage for terrorism as an optional add-on with a personal accident insurance policy. Thus, it is necessary to verify the specifics of the coverage with the insurer prior to purchasing an accident insurance policy.
What is Critical Illness Cover in Health Insurance?
If you receive a critical illness diagnosis, the policy provides a lump sum payout that you can utilise to cover the costly expenses associated with hospitalisation, doctor's consultation fees, medication, ambulance charges, room rent, pre- and post-hospitalisation expenses, as well as loss of income caused by the illness. This payout is in addition to your Mediclaim or health insurance policies.
Without a critical illness cover, paying for treatment costs can put a burden on your family and erode years of savings in just a few months. In addition, this insurance offers the option to receive a monthly income in case of diagnosis. When selecting a policy, consider the sum assured, age, critical illnesses covered, renewal limit, and inclusions and exclusions.
Having a critical illness cover can provide you with the financial support you need at the right time and help keep your other savings intact for their respective objectives.
Is PA and Critical Illness Cover Already Included in Health Insurance Plan?
The following are the important aspects of the accident and critical illness insurance compared to health insurance.
- Personal accident insurance is an optional coverage you can purchase alongside a health or motor insurance policy. This coverage provides protection against injuries resulting from an accident and necessitates an extra premium.
- The sum insured for health insurance can range from Rs 5-50 lakh or beyond, while personal accident insurance can range from Rs 2.5 lakh to 1 crore.
- Health insurance may have a waiting period of 9 months to 4 years, while personal accident insurance has no waiting period.
- You can widen the scope of your primary healthcare plan by purchasing personal accident coverage as an add-on to include the entire cost of medical treatment for injuries related to accidents.
- Health insurance and critical illness policies are different types of insurance plans. Health insurance covers medical and outpatient expenses during hospitalisation but may not cover all diseases and has a more extended waiting period. On the other hand, critical illness policy covers specific life-threatening diseases and provides a lump sum upon diagnosis.
- Health insurance covers a broader range of ailments, while a critical illness policy provides coverage for a specified list of critical illnesses. Both policies have their advantages and limitations and need to be purchased separately. The sum assured value varies between insurers, and waiting periods apply to both policies.