The Difference between Critical Illness Insurance and Health Insurance

Traditional health policies pay for hospitalization and/ or domiciliary expenses. However, critical illnesses can pose a greater financial burden than just the medical expenses on treatment. These diseases can also lead to full, partial, temporary or total disability and a change in lifestyle. The loss incurred could be far more than what the insurance covers.

What critical illness insurance does

This is where critical illness insurance comes into the picture. In critical illness insurance, the insurer makes a lump sum payment if the policyholder is diagnosed with one of the critical illnesses listed in the policy. The illnesses generally covered include cancer, kidney failure, paralysis, coronary artery bypass surgery, major organ transplantation and so on. HDFC ERGO General Insurance is one of the companies that offers critical illness cover.
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Health insurance vs critical illness insurance

While many people have mediclaim/ health insurance policies of their own or through their employers, they tend to ignore critical illness cover, thinking that it's just a kind of medical insurance. But there are certain differences between a health insurance policy and critical illness insurance policy.

???? A Regular Health Insurance Policy covers any illness disease or injury as long as within the purview of policy, whereas the critical illness insurance covers a pre-defined/ pre-specified illness only.