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In recent years, India has witnessed a significant rise in serious illnesses. Notably, the cancer-related hospitalisation claims increased by 12% in 2024, closely followed by cardiac arrest. This surge has increased public anxiety and concerns about the financial burden of such diagnoses.
With these rising concerns, it's crucial for everyone to have a critical or terminal illness cover to protect themselves during a medical emergency. But before purchasing one, it is important for you to know the difference between critical and terminal illnesses.
Read this article to understand the distinctions between the two illnesses. This will help you decide on the best coverage that suits your needs.
In simple words, terminal illnesses refer to incurable diseases and illnesses.
Unfortunately, these illnesses have been increasing at a rapid rate, especially in urban cities, thus leading to a lower life expectancy of many patients suffering from the same. During such conditions, a terminal insurance policy becomes very beneficial, wherein the nominee receives the sum assured as well as an additional bonus after the death of the policyholder.
Advanced stages of cancer, last-stage organ failure, Alzheimer's disease, neurological disorders, etc., are typical examples of terminal illness.
Critical illnesses are very serious illnesses that are curable through intensive medical treatment. Some of the common critical illnesses are heart attack, cancer, stroke, disability, paralysis, blindness, organ transplant, etc.
In the case of health insurance, the policyholders get the financial benefit only when he is hospitalized, provided the claim is valid and the insured person does not exceed the sum insured limit. However, this is not the case with critical illness insurance.
Critical illness coverage in health insurance provides the insured person with a one-time fixed benefit because critical illness treatment is very costly. But once you avail of the one-time fixed benefit, you will not get any more benefits from the insurance provider till the policy is renewed.
While both critical and terminal illnesses involve severe health conditions, they differ significantly in terms of sum assured, claim availability, etc. Understanding these differences is essential for making informed decisions about health insurance and ensuring the right coverage for your needs.
Here are some key differences between critical and terminal illness insurance:
*Note: This information is added only for informative purposes and collected from different sources across the Internet. The life expectancy month, days, and amount you can claim are not Digit specific and can vary from policy to policy.
Life is unpredictable, and serious health conditions can disrupt not just your well-being but also your finances. That’s where terminal and critical illness insurance becomes invaluable. Together, these covers act as a safety net, safeguarding you and your loved ones from the financial impact of health crises.
Let’s learn about the benefits of both insurances:
The following are some benefits of terminal illness insurance:
The following are some benefits of critical illness coverage:
Your financial situation will determine the answer to this excellent question. Nobody anticipates receiving a major disease or injury diagnosis; it frequently happens unexpectedly and severely disrupts daily living. Here is why you need a Critical Illness and Terminal Illness Coverage.
Terminal illness insurance is a crucial component of life insurance, offering a financial safety net when time is limited. This coverage ensures that you or your family can manage finances, healthcare costs and personal matters during a challenging time. The money from the terminal illness insurance can be used for:
A lump sum payment from critical illness insurance can significantly reduce financial strain at a trying period in your life if you cannot work due to your unavoidable living expenses and liabilities. The money can be used for anything; however, here are some examples of possible uses:
No, they are not the same thing. Although the diseases and injuries they cover are frequently quite similar, critical illness insurance pays out for specific serious conditions you will likely have throughout your life, while terminal illness coverage is part of life insurance and pays out if your condition is incurable and likely to cause death within a year.
Choosing between critical illness vs terminal illness depends on your personal circumstances, financial goals, and health needs.
However, for comprehensive protection, consider combining both. Opt for critical illness insurance as a standalone policy or rider and ensure your life insurance includes terminal illness benefits. This ensures you are financially prepared for both unexpected health challenges and end-of-life scenarios.
Here are some factors which will help you decide what to choose:
In conclusion, understanding the differences between critical illness and terminal illness insurance is essential for making informed insurance decisions. While critical illness insurance provides a financial safety net for treating severe but potentially curable conditions, terminal illness insurance focuses on offering support during the most challenging and irreversible stages of life.
By evaluating your health risks, lifestyle, and financial goals, you can choose the right plan to ensure peace of mind and financial security.
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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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