Difference in Health Insurance , Cancer Insurance and Critical Illness Policy

Difference in Health Insurance , Cancer Insurance and Critical Illness Policy

According to a cancer research paper published in the Lancet Oncology Journal, about 10 lakh people in India are diagnosed with cancer every year and 6 to 7 lakh succumb to this fatal disease. By 2035, these numbers may almost double to 17 lakh new patients and 12 lakh deaths per year.

While on one hand, technological advancements have made it easier to detect cancer in its early stages leading to improved life expectancy; on the other hand, the associated costs have also increased manifold. In fact, the cost for five common cancers in India has grown 3-4 times since 2000 (Source).

So while it is wise to avail critical illness and health insurance plans for various ailments and related hospitalization, a dedicated Cancer Illness Policy should be availed to mitigate the expenses related to cancer treatment. Here are the key differences between the three insurance types:

Cancer Insurance Critical Illness Insurance Health Insurance
Reason to Buy • Covers all expenses of cancer
• This is a benefit-based policy.
• Can use it to pay for your medical expenses or as a replacement of your monthly income
• A critical illness insurance is a benefit-based plan that provides lump sum benefit after a critical illness has been diagnosed
• The amount can be used for treatment or recuperation expenses
• A basic indemnity-based plan, which means that the insurer will reimburse hospital expenses or provide cashless treatment • Ideal for covering the rising cost of hospitalization, treatments, diagnosis, medical aid, etc.
What Does It Cover?  Life Insurance offers the Cancer Insurance Plan that provides comprehensive coverage against all stages of cancer (Pre-stage, Early Stage and Major Stage) Covers some of the common critical illnesses mentioned in the policy document. The pay-out is yours to spend Covers actual medical and surgical expenses incurred by the insured. Coverage is restricted to hospital expenses only, with strict sub-limits for room rent, etc.
Who is it for? Ideal for those individuals who identify the risks and understand the costs associated with cancer.

A cancer insurance policy should be purchased in addition to a basic health insurance policy. Start with a basic health insurance policy and add a specialized cancer insurance policy

Ideal for individuals who have a higher probability of developing a critical illness and can identify the risks and costs associated with such illnesses.

One should ideally start with a basic health insurance policy and then avail an critical illness policy for additional cover

A basic policy that is a must for everyone. With rising overall healthcare costs, a health insurance policy should be given precedence before the other two. However, in case or a critical illness or cancer, a basic health insurance policy might prove to be inadequate. Hence the need to add critical illness and cancer cover
Insurance Term Available for long terms like 20 years Available for long terms like 20 years Needs to be renewed after every 1 or 2 years

Remember that a health insurance plan will not be sufficient to secure you against cancer treatment costs. Consider your risks and avail the Critical Illness Plan, so that you are always well covered and protected against financial battle.

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