Critical illness VS Health insurance

Critical illness VS Health insurance

You might be confused whether to opt for Health insurance or Critical Illness cover or buy both or may be nothing. Yes, there are so many people who sail in the same dilemma. But, there is nothing to get confused, because, both are different products and have unique features.

This article will highlight what exactly Health insurance and Critical Illness cover means and their differences too.

What are Health insurance plans?

Offeringan exhaustive scope of coverage is the main feature of health insurance plan. Say for example, organ donor expenses, in-patient hospitalization, pre and post hospitalization, day care treatments, ambulance costs, etc. are some of the expenses that a health insurance may offer. In short, all the expenses related to a medical emergency that requires emergency hospitalization would be taken care of.

What are Critical illness plans?

Critical illness plans offers protection for certain illnesses that are mentioned in the policy contract. In case you get diagnosed with any such illness under the scope of the policy, a lump sum amount is paid that is usually equal to the Sum Insured that you have opted for.

How different are health insurance and critical illness plans?

A critical illness plan may be a type of health insurance plan however there are differences when you actually go to compare it to a health insurance plan. Mentioned below are some of its differences:

  • Sum Insured: The sum insured that a health plan offers is quite high as compared to critical illness plans. Say for instance, certain health insurance plans offer Sum Insured that can go as high as Rs.4-5 crores. However, critical illness plans do not offer coverage as high as health insurance plans. It can range somewhere between Rs.10 lakhs and Rs.30 lakhs.


  • Benefit structure: We all know that Health insurance plans are nothing but indemnity plans that will pay your hospitalization costs. When you file a health insurance claim, you will have to submit your medical history and other relevant bills to the health insurer. Post this the costs incurred subject to a maximum of the Sum Insured is paid by your insurer. On the other hand, Critical Illness Plans are fixed benefit plans. In case of diagnosis of any covered illness, an amount in lump sum would be paid to you that don’t depend on the actual expenses incurred. You can then utilize the amount to meet any expenses as per your wish or receive the best medical treatment. But, the claim amount that you receive under a health insurance plan is solely for the medical costs incurred and therefore it cannot be utilized for any other purposes.


  • Scope of Coverage: A health insurance plan offers a host of benefits. Right from your medical expenses to being transported to the hospital via an ambulance and also offering the medical treatment and recuperating at home post being discharged; all is taken care by a health insurance cover. Most health insurance plans also offer coverage for maternity expenses, AYUSH treatments, , restoration of Sum Assured, domiciliary hospitalization etc. However, a health insurance plan doesn’t cover any of these features. It only offers coverage to certain critical illnesses as mentioned in the policy document


  • PremiumsThe premiums charged by health insurance plans are higher since the scope of cover is more exhaustive. Critical illness plans, oppositely, are cheaper than health plans in terms of premiums.


Hope the confusion of how a critical illness plan as well as a health insurance plan are different from each other is resolved.  So, what are you waiting for? Which one do you think would be your best buy?


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