What is the difference between medical insurance and critical illness insurance?

In real life, health insurance is a type of insurance that everyone needs, while medical insurance and critical illness insurance are two common types of personal insurance. Although both belong to health insurance, there are certain differences between them. Generally, medical insurance belongs to physical health insurance, which is agreed upon by the hospital, while critical illness insurance is insurance agreed upon through disease.

The differences between medical insurance and critical illness insurance are as follows :

1. Medical insurance and critical illness insurance are both health insurance. However, according to the payment conditions, medical insurance is subject to the occurrence of medical treatment, and critical illness insurance is subject to the occurrence of agreed diseases.

2. Medical insurance of a reimbursement nature is expense-compensatory. It will reimburse the required medical expenses according to the agreed standards, and the maximum payment amount will not be more than the actual expenses. Therefore, medical insurance cannot be reimbursed repeatedly in principle. Major illness insurance with a payment nature assumes liability in the form of fixed payments based on the insurance amount stipulated in the contract.

3. The insurance period of many medical insurance policies is one year, and underwriting is required every year. Each year's policy is a separate one. Even if customers can renew their policies continuously and skip the underwriting process, there will still be many uncertainties, such as product discontinuation, price adjustment, age limit, health changes... For long-term or even lifelong critical illness insurance, the underwriting requirements are relatively high and the required premiums are relatively expensive, but the coverage period is longer.

Medical insurance covers the money spent on medical treatment, and critical illness insurance covers the money spent on recovery. If you want to live well after getting sick, you will need a lot of financial support, so it is better to make reasonable insurance plans sooner rather than later.

The simple summary is :

Medical insurance is a reimbursement-type insurance that is based on the premise that expenses will occur and the total reimbursement of all expenses that need to be paid in advance cannot exceed the actual expenses; while critical illness insurance is a one-time payment that has nothing to do with the actual treatment costs and can be used for long-term rehabilitation and compensation for income loss.

Medical insurance, also known as medical insurance, provides the insured with protection against medical expenses such as hospitalization, treatment, and surgery caused by certain diseases covered by the insurance.

Critical illness insurance is of a payment nature. Once diagnosed by a specialist doctor, the insurance company will pay directly. Hospitalization medical treatment is reimbursed. You see the doctor first, and then go to the insurance company to claim and get reimbursed. It is best to combine these two types of insurance together, so that as long as you are hospitalized, you can claim compensation, and hospitalization for minor illnesses can be reimbursed. The focus is on getting 20% ​​of the insured amount within ten specific illnesses, 80% for major illnesses, and 100% for no major illnesses.