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.

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 critical illness. You don’t need to be hospitalized. A diagnosis of a critical illness 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.

Cover Details
Type of Insurance
Type of cover
Over what period?
Amount of cover
Type of premium
Personal Details
Title
First Name
Last Name
Date of birth
Do you smoke?	No Yes
Email address
Home phone
Work phone
Mobile Phone
Is this a joint application?	No Yes
App. 2: Title
App. 2: First Name
App. 2: Last Name
App. 2: Date of birth
App. 2: Do you smoke?	No Yes
House Number
House/Flat name
Street
Area
Town
County
Postcode