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Medical Insurance VS. Critical Illness Insurance: How Are They Different?
22 May 2023
2 mins read
2 mins read
Medical Insurance vs.
Critical Illness Insurance:
How Are They Different?
While they may seem to cover overlapping needs, Medical and Critical Illness insurance actually protect you in different ways. Here’s how.
When it comes to protecting your health, there are a lot of plans to choose from, but there are two terms that come up together pretty often:
Medical Insurance and Critical Illness Insurance.
Do you need both or just one? Let’s find out.
Medical Insurance
If you need to be admitted for a medical procedure (e.g. surgery), medical insurance can help foot the bill and alleviate the costs of your procedure, allowing you to recover with peace of mind.
Medical insurance covers the partial or full cost of treatment or hospitalisation. Your policy will specify the maximum amount you can expect to draw on in the event that you need to.
If you need to claim something from your policy, your insurance will typically reimburse you after treatment or pay the cost upfront, depending on your policy’s terms and conditions.
Now, there are many factors that can lead to hospitalisation and treatment; that’s why medical insurance policies cover a wide range of possibilities.
This broader coverage usually comes with higher monthly premiums that increase as you get older.
Example of Medical Insurance in action:
You wake up with stomach discomfort one day, so you go see the doctor. Turns out the pain is being caused by appendicitis, so your doctor refers you to a hospital for immediate surgery.
Two days after surgery, you are discharged from hospital and get to go home! Your medical insurance will cover the cost of the surgery and your hospital stay.
Critical Illness Insurance
Unlike medical insurance, Critical Illness insurance targets a very specific list of illnesses, including:
● Cancer
● Heart attack
● Stroke
● Organ transplants
● Paralysis and more
In the event you are diagnosed with one of the covered illnesses, you’ll receive a lump sum payment, the value of which will depend on your plan. This payment will help you support yourself as you recover.
Exactly what you do with it is up to you, but people usually put it towards replacing lost income, repaying debt, or making lifestyle changes so they can recover better.
Example of Critical Illness Insurance in action:
Let’s say you have a stroke, requiring immediate hospitalisation and care. The doctor recommends you to take 3-5 months to recover and make some key lifestyle changes.
While your medical insurance will cover your time in hospital, your critical illness payout will help you support yourself during the months you take off work to recover.
To sum it all up, here's a side-by-side comparison of all you need to know:
| Insurance Type | Medical | Critical Illness |
|---|---|---|
|
Coverage |
General coverage for sickness and injury | Limited to specific critical illnesses |
|
Payout |
Based on medical bills over the course of treatment & policy coverage | Lump sum paid upon diagnosis |
|
Premiums |
Usually high, and gets higher as you age | Relatively low and stays fixed over time |
|
Potential beneficiaries |
The policyholder alone | The policyholder and/or their dependents |
At the end of the day, getting comprehensive coverage for your health needs ensures you’re well-protected in all aspects. Discover AIA’s medical insurance plans and critical illness insurance plans today and find the ideal protection package for you.
PROTECT YOURSELF AGAINST
CRITICAL ILLNESS
WITH
AIA CI INSURE
WHY CI INSURE?
1
Get lump sum payout when diagnosed
2
Gives you coverage for up to RM 100k
3
An option for annual or monthly payment
References:
- https://www.investopedia.com/terms/h/healthinsurance.asp
- https://www.investopedia.com/articles/personal-finance/010416/critical-illness-insurance-who-needs-it.asp
- https://ringgitplus.com/en/blog/sponsored/medical-insurance-and-critical-illnesses-protection-what-are-the-differences-and-why-they-matter.html
- https://www.pacificprime.sg/blog/critical-illness-insurance-vs-medical-insurance-things-you-should-know/
- https://bjak.my/blog/medical-insurance-vs-critical-illness-insurance-may-look-similar-but/#Is_medical_insurance_different_from_critical_illness_insurance_Is_it_not_the_same_thing
Medical Insurance vs.
Critical Illness Insurance:
How Are They Different?
While they may seem to cover overlapping needs, Medical and Critical Illness insurance actually protect you in different ways. Here’s how.
When it comes to protecting your health, there are a lot of plans to choose from, but there are two terms that come up together pretty often:
Medical Insurance and Critical Illness Insurance.
Do you need both or just one? Let’s find out.
Medical Insurance
If you need to be admitted for a medical procedure (e.g. surgery), medical insurance can help foot the bill and alleviate the costs of your procedure, allowing you to recover with peace of mind.
Medical insurance covers the partial or full cost of treatment or hospitalisation. Your policy will specify the maximum amount you can expect to draw on in the event that you need to.
If you need to claim something from your policy, your insurance will typically reimburse you after treatment or pay the cost upfront, depending on your policy’s terms and conditions.
Now, there are many factors that can lead to hospitalisation and treatment; that’s why medical insurance policies cover a wide range of possibilities.
This broader coverage usually comes with higher monthly premiums that increase as you get older.
Example of Medical Insurance in action:
You wake up with stomach discomfort one day, so you go see the doctor. Turns out the pain is being caused by appendicitis, so your doctor refers you to a hospital for immediate surgery.
Two days after surgery, you are discharged from hospital and get to go home! Your medical insurance will cover the cost of the surgery and your hospital stay.
Critical Illness Insurance
Unlike medical insurance, Critical Illness insurance targets a very specific list of illnesses, including:
● Cancer
● Heart attack
● Stroke
● Organ transplants
● Paralysis and more
In the event you are diagnosed with one of the covered illnesses, you’ll receive a lump sum payment, the value of which will depend on your plan. This payment will help you support yourself as you recover.
Exactly what you do with it is up to you, but people usually put it towards replacing lost income, repaying debt, or making lifestyle changes so they can recover better.
Example of Critical Illness Insurance in action:
Let’s say you have a stroke, requiring immediate hospitalisation and care. The doctor recommends you to take 3-5 months to recover and make some key lifestyle changes.
While your medical insurance will cover your time in hospital, your critical illness payout will help you support yourself during the months you take off work to recover.
To sum it all up, here's a side-by-side comparison of all you need to know:
| Insurance Type | Medical | Critical Illness |
|---|---|---|
|
Coverage |
General coverage for sickness and injury | Limited to specific critical illnesses |
|
Payout |
Based on medical bills over the course of treatment & policy coverage | Lump sum paid upon diagnosis |
|
Premiums |
Usually high, and gets higher as you age | Relatively low and stays fixed over time |
|
Potential beneficiaries |
The policyholder alone | The policyholder and/or their dependents |
At the end of the day, getting comprehensive coverage for your health needs ensures you’re well-protected in all aspects. Discover AIA’s medical insurance plans and critical illness insurance plans today and find the ideal protection package for you.
PROTECT YOURSELF AGAINST CRITICAL ILLNESS
WITH
AIA CI INSURE
WHY CI INSURE?
1
Get lump sum payout when diagnosed
2
Gives you coverage for up to RM 100k
3
An option for annual or monthly payment
References:
- https://www.investopedia.com/terms/h/healthinsurance.asp
- https://www.investopedia.com/articles/personal-finance/010416/critical-illness-insurance-who-needs-it.asp
- https://ringgitplus.com/en/blog/sponsored/medical-insurance-and-critical-illnesses-protection-what-are-the-differences-and-why-they-matter.html
- https://www.pacificprime.sg/blog/critical-illness-insurance-vs-medical-insurance-things-you-should-know/
- https://bjak.my/blog/medical-insurance-vs-critical-illness-insurance-may-look-similar-but/#Is_medical_insurance_different_from_critical_illness_insurance_Is_it_not_the_same_thing
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