Here’s How Critical Illness Plan Differs from Health Insurance Plan

It seems that more and more people are becoming victim to different non-communicable diseases. Lifestyle diseases such as hypertension or diabetes take its toll on human lives. These are becoming alarmingly common these days. With the rising burden of diseases on the population, another thing that goes simultaneously is- medical inflation. With the rising probability of illness and healthcare costs touching the roof, a financial crisis is evident. And to combat this, an adequate health cover, for instance, National Health Insurance is essential.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*
  • 50,000 claims approved in last 15 months*
  • Schedule home visit with our advisors
  • Get a plan based on your medical needs

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
All health plans cover Covid-19 treatment
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium

      But do you think, a regular health insurance plan is sufficient to cover the expenses of some non-communicable ailment such as cancer? No! Comprehensive health insurance seems like a silver lining in covering medical emergencies, but it doesn’t cover a specific critical illness. Here comes the Critical Illness Plan to your rescue.

       

      Many of us even assume that critical illness plan and health insurances are one and the same. Reality is they’re not. Let’s see how different they are from each other!

      Health insurance vs. Critical Illness Plans

      No doubt Critical Illness Plan is a part of health insurance but there are major differences when it comes to coverage and structure. Let’s understand in detail:

      Difference of Coverage Offered

      The coverage offered by both plans differs in terms of their nature. The coverage of a health insurance plan is extensive in nature which includes expenses starting right from transportation to being treated or recovering at home even after being discharged. Some insurers also cover AYUSH treatment, domiciliary hospitalisation, maternity expense cover, restoration sum insured etc. are some of the other features of health insurance. These features are not found in a critical illness policy. The policy features turn around a specific illness which pays a lump sum amount at the time of diagnosis.

      Sum Insured

      In case of health insurance, the insured is authorised to opt for a higher sum insured, even in crores. However, critical illness plans don’t come with such a higher sum insured. The maximum sum insured one can opt for under a critical illness range between Rs. 10-25 lakhs.

      Structure of Benefits

      Health insurance plans work around the principle of indemnity where the actual cost of hospitalisation is paid. When a claim arises, you are required to submit the bills supporting your claim and the insurance provider pays up to an admissible amount. On the other hand, critical illness plans are fixed benefit plans where it pays the sum insured in case you’re diagnosed with any of the listed critical illness. The benefit paid doesn’t depend on the actual treatment cost. The received money can be used to pay off the liabilities or receive better treatment. However, in case of health insurance, the received claim is solely for the incurred medical cost and can’t be used for other purposes, unlike a critical illness plan.

      Policy Premiums

      Since health insurance plans are extensive in nature and cover the insured extensively, the premiums are considerably higher than a critical illness plan. You can avail a critical illness plan at a cheaper rate than a health insurance plan.

      Policy Period

      Both plans differ from each other in terms of their policy tenure. When a regular health insurance policy has tenure of 1 year and then require renewing every year-on-year, critical illness plan, on the contrary, come with a longer tenure. You can opt for a plan for  15 to 20 years.

      Waiting Period

      Health insurance policies come with a waiting period of 30 to 90 days depending on the insurers, within which you can’t claim the policy, except for accidental claims. On the other hand, usually, to claim critical illness policy, you have to wait for 9 days and 30 days of survival period after being diagnosed with an illness. However, the waiting period may differ from one insurer to another.

      Reimbursement of Claim

      To be covered under health insurance, the insured is required to be hospitalised at least for 24 hours. The medical bills and treatment costs are reimbursed based on the documents furnished by the insured. In case of cashless treatment, the settlement is done directly after discharge. In case of a reimbursement claim, the insured has to pay the bills initially and register a claim later, along with the original medical bills and discharge summary. The insurer after verifying the claim request and documents pays the amount. In case of a critical illness plan, to claim the full sum insured, the insured has to serve the survival period of 30 days after being diagnosed with an illness.

      Members Covered

      A health insurance coverage can be extended to individual, family and senior citizen parents. Dependent children can also be covered. In case of an individual plan, the sum insured is given separately to every insured member. While in case of a floater plan, the sum insured is equally divided among the members. But critical illness insurance can be availed as an individual sum insured basis only.

      In a Nutshell!

      While health insurance or indemnity plans are bought to defray the emergency or planned hospitalisation expenses, a critical insurance plan come in handy in mitigating the financial burden arising from a serious illness. None of us would ever want to be a situation where we could not fight with a life-threatening health condition despite being covered with a comprehensive health cover. Both critical illness and mediclaim policy are designed to cater to a certain purpose and supplement each other in some manner. Hence, both plans are equally important. The only thing to keep in mind is to analyse your needs first, then buy. As a critical illness plan can be purchased separately, it will cost you a little extra premium, apart from the one you’re paying for your health insurance.

      Now that you’re aware of the differences between health insurance and critical illness plan, which one is your preference? As both the plans are unique in nature, it will be quite difficult to decide whether you should go either of the plans; let’s leave it on you. Consider your needs and budget, compare the plans and then buy.

      If you find this article handy, leave your comment on the below section!

      Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Does Health Insurance Cover H3N2 Virus?

      20 Mar 2023

      The seasonal H3N2 virus is rapidly spreading across India. As per
      Read more
      Common Wellness Benefits Offered by Health Insurance Plans

      14 Feb 2023

      Health is the biggest wealth in the true sense. No matter how much
      Read more
      Should You Buy a Super Top-up Health Insurance Policy?

      18 Jan 2023

      India is abuzz with a variety of health insurance plans to cater
      Read more
      6 Reasons Why Your Cashless Health Claims Can Get Denied

      18 Jan 2023

      Cashless claims are one of the most lucrative benefits of buying a
      Read more
      Check Out the Mandatory KYC Documents for Health Insurance

      30 Dec 2022

      The Insurance Regulatory & Development Authority of India
      Read more
      What are the Normal Thyroid Stimulating Hormone (TSH) Levels as Per Age?
      The thyroid gland is an important gland responsible to produce the right amount of hormones for normal body
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      10 Major Benefits of Ayushman Bharat Yojana
      Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi
      Read more
      Best Health Insurance Plans for Senior Citizens in 2023
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      Income Tax Slab for Women: Guide to Exemptions and Rebates
      In India, every person who earns beyond a certain limit is liable to pay income tax to the government. The tax
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL