Cancer Insurance vs. Critical Illness Insurance: What is the Difference?

As heart disease, chronic obstructive pulmonary infection, and tuberculosis stand as the top causes of death in India, the importance of opting for health insurance is paramount. Insurance not only aids in the early detection of such critical chronic disorders through free annual health checkups but also secures your finances in the event of costly care and treatment.

However, while purchasing insurance to fight harmful health conditions, one thing that confuses most people is whether to buy critical illness insurance coverage or cancer insurance. For a better understanding of these two types of insurance, let us walk you through the in-depth definition of both plans along with the key differences between them.

What is Cancer Insurance?

Cancer insurance is a standalone policy that has a precise focus. It offers financial protection if an insured individual is diagnosed with cancer at an early, primary, or advanced stage. Some common cancers that are covered by cancer plans are:

• Breast Cancer
• Ovarian Cancer
• Lung Cancer
• Stomach Cancer
• Hypopharynx Cancer
• Prostate Cancer

In the case of other types of cancer, coverage is provided at various stages of diagnosis, treatment, and surgery.

Since you are exploring more about cancer plans, it is crucial to know that cancer, irrespective of the type, will not fall under the coverage if it is caused by:

• Sexually transmitted diseases (STDs)
• Consumption of intoxicating substances like alcohol, drugs, or tobacco
• Contamination by biological, chemical, or nuclear substance
• Congenital conditions.

Please note that skin cancer is also excluded from cancer insurance policies.

Since a cancer insurance policy is designed to eliminate the financial stress associated with cancer, investing in it will surely be a smart move if:

• Cancer runs in your family’s medical history.
• Either of your family members is diagnosed with it.

What is Critical Illness Insurance?

Unlike cancer insurance, critical illness insurance offers vast coverage against various life-threatening diseases, including cancer. It applies to all those conditions that drain you physically, financially, and emotionally. The coverage includes more than 30 critical disorders. Take a look at some of the major illnesses covered are:

• Cancer of Specified Severity
• Aplastic Anaemia
• Bone Marrow Transplantation
• Myocardial Infarction
• Heart Transplantation
• Surgery of Aorta
• Dissecting Aortic Aneurysm
• Coma of Specified Severity
• Stroke Resulting in Permanent Symptoms
• Permanent Paralysis of Limbs
• Major Burns
• Alzheimer’s Disease
• Cervical Cancer
• Ovarian Cancer
• Breast Cancer
• Pneumonectomy etc.

In the event of a critical illness diagnosis, the insurance offers a full lump sum payout after meeting the survival criteria. Along with serious health conditions, it also provides coverage for accidental disability (full/ partial) and death.

A critical illness cover indeed serves as a precautionary measure. Instead of making a challenging period harder, the plan allows the policyholder to focus on recovery while it takes care of all the finances.

What are the Key Differences Between Cancer Insurance and Critical Illness Insurance?

Now that you have acquired in-depth knowledge about both insurance policies, let us explore some of their key differences:

Critical Illness Insurance vs. Cancer Insurance: Which Is Better?

Amidst global medical inflation, it would be unwise to go without health insurance. Therefore, it is better to stay away from this unsettling confusion between cancer health and critical illness coverage.

Rather, if required, policyholders can include both plans as additional riders in their existing health insurance for optimum financial protection and better coverage. Both policies, especially critical illness coverage, offer lump sum funds. You can use the amount appropriately where you feel it is needed.

While regular health insurance will cover your hospitalisation and treatment costs, critical illness cover will take care of the costs of rehabilitation, nursing care, etc. On the other hand, cancer insurance helps to recover the loss of income. Thus, both insurance companies have some outstanding benefits that highlight their importance. You can follow these given steps to choose the right policy for yourself:

Step 1: Health Risk Evaluation

While selecting a policy, consider your own health and your family’s medical history.

Step 2: Check Your Existing Health Plan

Look at your current medical policy and find out if it has room for any supplemental, specialised insurance.

Step 3: Economic Ability

See if the coverage you are planning to purchase falls under your budget.

Step 4: Review Exclusions

This may sound weird but ensure to read the exclusions word by word more than the inclusions to stay safe from any unforeseen surprises while filing your claim.

Step 5: Expert Consultation

Reach out to the offline agents and customer service executives of your chosen insurance provider to understand the nuances of both plans. Hopefully, these steps will help you make a proper health investment decision.

Final Words 

To sum up, this detailed overview has given you important insights into critical illness insurance and cancer insurance and how they differ. With a solid understanding of their features and differences, you can confidently select the insurance plan that you and your family need, helping you achieve true financial freedom.

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