The simple answer is yes. Your medical plan covers the treatment cost of critical illnesses. However, the high cost of treatment can use up your entire medical coverage, leaving you with little to no coverage for future illnesses. This is where critical illness plans come in. A critical illness plan is a separate and independent policy from your medical plan. Check out our handy infographic for the difference between a medical and a critical illness plan.
Most people tend to overlook the possibility of ever having to deal with serious health issues like critical illnesses. The diagnosis of a critical illness could mean a setback in many areas – one would have to take time off work to focus on full recovery, or fork out unplanned monies for treatments, therapies or medical equipment at home. A critical illness plan provides a solution for the possible financial conundrum.
#3: SHOULD I GO FOR THE PLAN WITH THE LOWEST PREMIUM?
Once you have decided on the type of medical coverage you want, the next item to address is the cost of your medical plan, also known as your monthly premium. The amount you pay each month largely depends on three things: your deductible, co-insurance and your annual limit.
- Premium: The premium is the price you pay per month for your medical plan, regardless of whether you make use of it or not. Premium costs can vary depending on your deductible
- Deductible: A deductible is the upfront payment you make for all your medical care before the insurance kicks in. A high-deductible plan means that you are responsible for a greater share of your initial healthcare costs. As a result, you pay a lower monthly premium. After meeting your deductible, the insurer will pay for the remaining portion of the cost. This arrangement is ideal for financially independent people with no dependents.
- Coinsurance: Co-insurance is a percentage of a medical charge that you pay, while the rest of the cost is covered by your medical plan. For example, if you have 20% coinsurance, you pay only 20% of each medical bill, and your health plan covers the 80%.
- Annual limit: An annual limit is the maximum amount you can claim from your insurer in a year.
One blunder most people tend to make is to look for a plan with the lowest premium, regardless of the annual limit and features. Explore different plans and find out a combination that works best for you. Some plans like the A-Life Med Regular impose an annual limit but have no limit on the amount you can claim over your lifetime, while others like A-Plus Med feature an increasing annual limit starting from the third year of your policy. A-Plus Med also has zero co-insurance and deductible charges, meaning you do not pay for any portion of the medical charges.
#4 WILL MY MEDICAL PLAN COVER MY EXISTING MEDICAL CONDITION?