Home >> Insurance >> Health (Mediclaim) >> Overview

What is the difference between a Health Insurance policy and a Critical Illness policy?

Though critical illness is a health plan, there are various differences between the critical illness plan and a health insurance plan. Read on to find out more.

Apnainsurance.com Research Bureau

05 Dec 2007

A health insurance plan would entitle the insured to be reimbursed in case of hospitalization for any illness, disease or injury as long as it is within the purview of the policy. The policy continues even after a claim has been made.

A critical illness plan, on the other hand, provides cover for a pre-specified/defined set of critical illnesses only; other diseases or injuries will not be covered. Here, the insurer provides the insured with a lump sum immediately or within a few days of the diagnosis of a critical illness.

Typically, the insurance plan ceases once the benefits have been paid to the insured, although a few insurers offer to cover the insured for the remaining illnesses at a lower sum assured and revised premium rates.

health insurance PLAN	CRITICAL ILLNESS PLAN
Cover for diseases / illnesses / injuries; as long as within purview of policy	Cover for specific Critical Illnesses only - such as Heart Attack, Kidney Failure, Stroke
Reimbursement of actual expenses or provision of cashless benefit facility	Lump sum paid within few days of diagnosis or immediately
Policy continues even after claim is made, until renewal	Policy ceases once benefit has been paid (few offer the choice of remaining insured for other illnesses)