Differences Critical Illness vs. Medical Health Insurance Explained

Critical illness insurance and medical insurance (also known as health insurance) are two different insurance policies that provide different coverage and benefits. Here are the main differences between them:

Critical Illness Insurance

1. Coverage: Critical illness insurance provides a lump-sum payment if the insured is diagnosed with a critical illness.

2. Payout: The benefit is paid out as a lump sum regardless of medical expenses.

3. Use of Funds: Payouts can be used for any purpose, including medical treatment, recovery expenses, paying off debts, or covering lost income.

4. Conditions Covered: Typically covers a list of specific, severe health conditions.
   

One of the most affordable mass-market critical illness plans from AIA is their A-Life Essential Critical Care.

Medical Insurance (Health Insurance)

1. Coverage: Health insurance covers a broad range of medical expenses, including hospitalization and surgery.

2. Payout: The benefit is paid out as reimbursement for medical expenses incurred, up to the policy's limits.

3. Use of Funds: Payments are made directly to healthcare providers or reimbursed to the insured for covered medical expenses.

4. Conditions Covered: Covers a wide range of medical conditions and treatments, from minor illnesses to major surgeries including hospitalization for accidents.

5. Premiums: Premiums vary based on coverage level, deductibles, copayments, and the insured's age and health.
   

To help lower your medical insurance premium, AIA has just introduced the latest cost-saving option called SMART Option for their A-Plus Health 2 medical plan.

Summary

• Critical Illness Insurance: Provides a lump-sum payment for specific severe illnesses, which can be used for any purpose.

• Medical Insurance: Provides coverage for a wide range of medical expenses related to treatment and care, reimbursing actual costs incurred.

Both types of insurance can be complementary, offering financial protection in different scenarios. Critical illness insurance can help cover costs not typically included in health insurance, such as non-medical expenses during recovery, while health insurance covers ongoing medical expenses.

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Which will you get first?

• 0%Medical Insurance
• 0%Critical Illness Insurance