Purchasing insurance has always been a habit popular among Hong Kong people. Yet, with the wide variety of insurance policies available on the market, many are unable to distinguish the difference between medical insurance and critical illness insurance. Although they are similar in nature and both protect consumers’ health, their coverage and functions are significantly different!
Should you opt for Medical Insurance or Critical Illness Insurance? Get to know their coverage!
For insurance newbies, it is likely that they will choose between Medical Insurance and Critical Illness Insurance when in fact, their coverage are different. It is best to identify what your needs before deciding to purchase an insurance policy.
Medical Insurance covers general outpatient, surgical, therapeutic and hospitalization expenses for all types of illnesses, with the benefit that private hospitals will also be paid for; but the coverage is reimbursable, and does not cover the insured’s loss of employment. Critical Illness Insurance covers three major illnesses, including cancer, heart disease and stroke, for which the insured will receive a lump sum payment to support medical expenses and work loss.
Are these two insurance suitable for me?
The sum assured for Critical Illness Insurance can go as high as millions, and premiums are relatively high, ranging from a few hundred to a few thousand dollars per month, depending on the plan coverage. Medical Insurance premiums are relatively low, making it easier for new office workers to afford, but premiums will increase with age.
Comparison between Medical Insurance and Critical Illness Insurance
|Medical Insurance||Critical Illness Insurance|
|Coverage||General outpatient, surgery, treatment and hospitalization fees||Covers cancer, heart disease, and stroke|
|Compensatory Approach||Reimbursement||A lump sum payment of part or all of the sum assured|
|Premium||Increases with age||Fixed|
|Flexibility||Covers a wider range of diseases||The insured is free to use the sum assured|