Health is wealth but for one to protect his or her health and financial freedom it does not only require healthy living but also health insurance and critical illness insurance. They are fundamental money shields in today’s world of rising medical expenses. Hence, typically, both forms of insurance are beneficial but are unique in their functions and are used to address various issues. Here, this blog takes you through health insurance and critical illness insurance and why it is viable to combine the two if they are different. 

Understanding Health Insurance

Health insurance may be defined as the premiums paid by the policyholder that guarantee the policyholder the payment of his medical and surgical expenses throughout the policy. Also, it often implies the spectrum of such health care services as inpatient care, physician services, drugs, and medicines, as well as preventive care, and even complementary and alternative medicines. Thus, health insurance may be provided by an employer, through governmental programs, or can be bought by an individual. 

Types of Health Insurance Plans

1. Health Maintenance Organization or HMO

• The managed care forms demand you to select a primary care physician (PCP), and this comes with referrals to see specialists. 
• Generally, it has cheaper premiums and out-of-pocket expenses but the patient has little flexibility in selecting the healthcare providers.

1. Preferred Provider Organization or PPO

• Provides more choices for healthcare providers and there is no need for a referral to see a specialist. 
• Possibly higher premium costs and out-of-pocket costs than HMOs.

1. Point of Service or POS

• Combined features of both HMO and PPO; patients must obtain a referral from their PCP for a specialist; however, out-of-network services are permitted at a more elevated level of cost. 
• Cost efficiency compared to the fixed and flexible costs.

Benefits of Health Insurance

Financial Protection: Health insurance reduces your vulnerability to expensive medical costs by assuming the major part of the cost of your medical bills. Based on the aspects discussed above, it is important to understand that when one is not insured, he or she is bound to incur a lot of expenses, even from a normal flu.

Access to Quality Healthcare: It is a safety net that guarantees a client has several doctors to attend to his or her needs and hence avails him or her healthcare services. Routine care such as physical examination and immunization for ailments are included, which helps to keep you out of the hospital. 

Preventive Care: Most health insurance portable plans include preventive services like vaccination, screening tests, health assessments, or annual physical examinations, which if encouraged can assist in the identification of severe illnesses at an early stage thus, reducing the overall cost.

Critical Illness Insurance

Though health insurance provides wider coverage of the medical provisions, this does not hold well when one is anaemic with a severe and deadly illness. This is where critical illness insurance plays an important role. Critical illness insurance pays out a cash sum on diagnosis of a predetermined severe or life-threatening disease for example cancer, heart attack, stroke and so on. This payment can be fixed or cash payment, and it can be used as expenses as you wish for; Medical bills, household bills, or any other expenses. 

How Critical Illness Works

Critical Illness insurance is meant to offer financial help in the time of a medical emergency by issuing you a single sum if diagnosed with a listed disease. 

• Cancer 
• Heart attack 
• Stroke 
• Major organ transplant 
• Kidney failure 
• Multiple sclerosis 
• Coronary artery bypass surgery 

Having developed any of these conditions, as well as after passing the necessary waiting period, the insurer is obliged to pay the full amount of the benefit, which can be spent freely.

Benefits of Critical Health Insurance

Financial Flexibility: Critical illness insurance has an option of making a lump-sum payment when the individual is facing a tough time financially. Such funds can be used to meet outstanding medical expenses, pay bills or acquire lost income where one is unable to work. 

Comprehensive Coverage: Unlike health insurance, which may always offer coverage for some treatment expenses, critical illness insurance can provide for some out-of-pocket expenses such as home alteration and clinical rehabilitation itself or other treatments not reimbursable through the conventional health insurance policy. 

Peace of Mind: Knowing that a person has financial safety, helps in focusing on the event or recovery rather than being worried about finances or money.

Why You Need Both Health Insurance and Critical Illness Insurance

Complementary Coverage

Using both health insurance and critical Illness is advantageous. When the person is covered by both forms of insurance, it makes him or her economically secure. If the plan is under health insurance provisions, then the patient will be able to receive both routine and emergency care costs without extra payments; and if the patient relies on the policies to be under critical illness insurance provisions, the patient is offered a one-time lump sum payment in case he/she is diagnosed with one of the serious illnesses. This helps to enable the victim to concentrate on the recovery process without worrying about bills to be paid. 

Real-Life Scenarios

Suppose a person is given a cancer diagnosis. The treatment that would require a doctor’s attention will be afforded through health insurance through treatments like chemotherapy, surgery, and hospitalization. However he or she may incur some extra costs; for example transport costs during treatment, loss of salary in case the person is unable to work and the cost of hiring a specialist to administer the treatment in the house. Critical illness insurance would pay out a one-off amount which would cover these expenses in case of critical illness thus, safeguarding the economic needs of a person in this time of hardship. 

Conclusion

In conclusion, health insurance and critical illness insurance are important plans for themselves in an individual’s financial protection strategy. As opposed to health insurance that pays for numerous medical services and guarantees access to important healthcare services, critical illness insurance helps cushion clients and their families financially in the unlucky event of a critical illness by covering costs which are outside of basic medical care. Purchasing a health insurance policy in addition to having a critical illness insurance policy is the best decision in preventing any mishap from financially ruining your family. 

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