What is the key difference between critical illness along with term insurance vs a comprehensive health insurance plan?
A critical illness plan, whether as a rider with a term insurance or as a standalone cover, is typically a fixed benefit plan. This means, that upon diagnosis of a critical illness that is defined on the plan (at specific severity that is also defined on the terms and conditions of the plan), the customer would receive a lumpsum amount equivalent to the sum assured. Upon payment of this benefit, the policy lapses and the customer can do what he/she wants with this money. It is thus a one-time payment plan but which offer a lumpsum in hand. A comprehensive health insurance plan on the other hand offers lifelong repeated coverage against any kind of hospitalisation including those done for critical illnesses. These plans however indemnify or provide for only against actual hospitalisation costs (and not any lumpsum in hand) but are renewable year after year for lifetime even after one makes a claim. These plans therefore offer wider and repeated coverage against all kinds of illness and hospitalisation for a lifetime. There are also additional riders and combinations that enhance the protection one can have against illness; one can get this information by speaking to our advisors directly.