Health insurance and critical illness insurance are not the same thing. The simplest way to understand the difference is to look at what the money is intended to help you pay for.

Health insurance helps cover the cost of medical care. Critical illness insurance provides you with funds to help manage your everyday financial commitments when a covered critical illness affects your ability to work and earn an income.

Additionally, unlike health insurance, which generally does not return your premiums if you don’t make a claim, some critical illness policies offer an optional Return of Premiums benefit, subject to terms and conditions.

What Does Health Insurance Cover?

The purpose of health insurance is designed to help you afford the medical care you need. This may include:

• Doctor visits
• Hospital stays
• Diagnostic tests
• Medical procedures
• Other eligible medical expenses

But what happens when the medical bills aren’t your only financial concern? This is where critical illness insurance comes in and this is why it may be necessary to have both types of policies.

What Does Critical Illness Insurance Cover?

Critical illness insurance does not pay your medical bills in the same way health insurance does. Instead, it provides a lump-sum benefit directly to you following a covered critical illness.

If your illness prevents you from working, the bigger question may be: how do you continue paying for everyday life while you recover? Your mortgage or rent doesn’t stop. Neither do your utility bills, groceries, transportation costs, loan payments or other financial commitments.

If you are diagnosed with a covered critical illness and meet the conditions of your policy. You can use the funds according to your needs, including:

• Replacing some of the income you may lose while you are unable to work
• Making changes to your home or lifestyle during recovery
• Helping with expenses that aren’t covered by your health insurance

How Does TATIL Life’s LifeSPAN Work?

With LifeSPAN* critical illness insurance from TATIL Life, you will receive the sum insured (up to $2 million) after being diagnosed with a covered illness, subject to the terms and conditions of the policy.

While these funds can be used to assist with the costs of treatment and recovery, LifeSPAN is designed to provide broader financial support during the disruption caused by a serious illness – particularly when an illness requires you to take time off from work or makes you unable to return to work.

LifeSPAN also provides an additional 25% of policy coverage for females diagnosed with certain covered illnesses, including Breast Cancer, Cervical Cancer, Ovarian Cancer and Cancer of the Uterus, subject to the terms and conditions of the policy.

The Bottom Line

Health insurance and critical illness insurance are not interchangeable.

One addresses the cost of treatment. The other addresses the broader financial impact of becoming seriously ill.

For many people, having both types of coverage can provide more complete financial protection, helping you focus on your recovery without having to worry about how you will continue to meet your everyday financial commitments.

*Terms and conditions apply. Coverage, eligible illnesses, benefits and requirements are subject to the terms of the applicable policy.

Author: Victoria Talma