The world of insurance can be confusing, especially when it comes to understanding the difference between health insurance and critical illness insurance. Both are important to safeguard your financial well-being but serve very different purposes. This blog will help clarify the differences between health insurance and critical illness cover.
What is health insurance?
You’ve probably heard about health insurance or might even have it. It’s more commonly talked about than critical illness. Health insurance is designed to cover the cost of medical care. Although there are many types of health insurance policies, things that they typically cover include;
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Hospitalisation & Surgery → The cost associated with staying in a hospital, including surgeries and treatments
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Doctor visits → Depending on your policy, doctor visits might be fully or partially covered.
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Prescription drugs → The cost associated with prescribed medications
Health insurance’s purpose is to cover financial costs for ongoing regular and unexpected medical costs.
What is critical illness?
Critical illness insurance, on the other hand, provides a lump sum payment if you’re diagnosed with a specific serious illness. Pinnacle Life cover 24 conditions, including cancer, heart attacks, and strokes. This type of insurance offers financial support during critical times when you may be unable to work. The lump sum payment can be used for any purpose, whether it’s covering medical costs, paying the mortgage, or funding lifestyle changes during recovery. You choose how you want or need to spend the money.
Why you might need both
Having both types of insurance provides comprehensive protection. Health insurance ensures you can afford medical care, while critical illness insurance gives you financial flexibility during a severe illness. This combination can be crucial for maintaining your financial stability and quality of life. To understand what insurance is right for you, you can read more on how to choose the right insurance for you.
Understanding the differences between health and critical illness insurance is important for protecting your health and financial well-being. Assess your needs, consult with experts, and ensure you have the right cover in place for the worst-case scenario.
