Why cover?
  • affects 1 in 4 women / 1 in 5 men before retirement
  • 94.1% of the critical illness claims are paid
  • protect yourself and your family if you get seriously ill
Why us?
  • get the cover that will pay when you need it
  • save up to 35%, cover from £5 a month
  • free, fast and without obligation quotes
Insurers: Aviva, Legal & General, Liverpool Victoria, Scottish Widows, Vitality, Zurich

Mediclaim vs. Critical Illness cover: Which one or both?

The fact is, only a small portion of the British population is covered by critical illness insurance. This is because they think that since they already have Mediclaim, a critical illness policy is really a redundant cover.

But, really, when you look at both Mediclaim and critical illness a little more closely, you will find that they offer different benefits and that if you can afford it, it will do you good to have both.

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Let’s take a look at the differences and benefits of each, shall we?

Feature Mediclaim Critical Illness
Payment

This will pay for the cost of the treatment.

You will need to be hospitalized for you to get to claim.

This will provide a lump sum upon diagnosis of a serious illness.

You don’t need to be hospitalized. The diagnosis is enough for the insurance company to pay.

Use of the funds

Mediclaim will pay for actual costs of your hospitalization and medication. You can go to accredited hospital for “free” or you can choose a provider and get reimbursement. There is also a maximum limit for a specific benefit.

You have the freedom to spend the lump sum however you want or need. You can use it for your treatment, for your family’s daily needs or to pay your mortgage or loans.

Covered Illnesses

This will cover virtually any medical condition that requires you to be hospitalized.

There is only a list of covered illnesses and the condition must be considered critical before the claim is payable.

Mode of payment

This is on a reimbursement basis, you need to file a claim attaching all the bills related to the hospitalization.

This will pay you outright. Once you are diagnosed and make a claim, the insurance company will make the payment.

Length of coverage This usually covers one year and is renewable annually.

Also, as long as the policy is within its effective date, it will continue providing you with cover.

This is more of a long-term cover – lasting for 10 to 20 years.

Once a claim is paid, the cover will cease to be effective.

Age range for coverage

This will provide coverage for those until 75 to 80 years old.

Coverage is usually only up to 60 to 65 years old.

Critical Illness vs. Mediclaim: Pros and Cons

  Critical Illness Mediclaim
Pros
  • The Sum Insured is paid out when the critical illness meets the policy definition. You don’t need to be hospitalised to be eligible for the claim. You don’t need to submit receipts of your hospitalization expenses.
  • You get a tax-free lump sum.
  • You are free to spend the insurance proceeds – whether for the treatment, for out-of-pocket expenses, household expenses and other needs.
  • Provides reimbursement of covered medical expenses
  • Covers most medical conditions for a more comprehensive cover
  • Mediclaim benefits can be cashless with the proper authorization
Cons
  • Provides payment for a limited list of serious illnesses only.
  • The illness must meet the definitions provided in the policy.
  • There is a survival period from the day the illness is diagnosed. You must survive for the benefit to be payable.
  • Mediclaim is a reimbursement plan and benefit limits on each expense item apply.
  • Mediclaim is limited to qualified medical treatments, most of which need that you be hospitalised. Although in some cases, pre-medical expenses and post medical expenses are also included.
  • You need to submit receipts or records of expenses.

Why should I buy critical illness when I already have Mediclaim?

The critical illness cover actually complements Mediclaim, rather than competes with it. A hospital stay can be financially draining. The expenses are not just for the hospital stay but for transport costs, the cost to hire a housekeeper or child care or to have adaptive equipment installed in the house. This way, you enjoy a comprehensive coverage for your hospitalization and related needs.

Last updated on: 18.1.2013

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