How Does Critical Illness Insurance Differ From a Standard Health Insurance Cover?

The changing lifestyle in today’s day and age has resulted in many falling preys to unexpected health complications. While some of these conditions are not so severe, some others are absolutely fatal. The primary reasons for such serious conditions can either be lack of time to focus on health amidst your busy work schedule or other lifestyle conditions, including rising pollution levels that make people of all ages prone to falling sick more often. Whatever be the reason, a health insurance policy is what comes in handy when ailments start to grip. As treatment costs are increasing, it can also become difficult to financially manage these treatments.

A health insurance policy is what ensures financial coverage for all these treatments that otherwise would burn a hole in your wallet. With the shield of a health insurance plan, you can focus on recovery instead of having to worry about medical expenses. You can either purchase online health insurance or opt for the traditional offline purchase.

But health insurance plans are available in different types of insurance covers that are suited for different purposes. While individual plans are the simplest form of health insurance, there are critical illness insurance policies that are designed to cover serious illnesses like cancers, heart attacks, renal failure, and the like. This article elaborates on the differences between a standard health policy and critical illness plans. Continue reading to find out more.

  1. Policy features

A standard health insurance policy covers the different expenses related to hospitalization. In addition to that, daycare procedures, outpatient treatment, medical check-ups, and pre- and post-hospitalization coverage are some of the features of standard health insurance plans. Critical illness plans, on the other hand, make a lumpsum payment when diagnosed with a specified condition as per the policy’s terms. Since most of these critical illnesses result in fatal consequences, the lumpsum payout helps pay for necessary treatment from the very start of their diagnosis. This way, you can avail coverage for all medical expenses, from the cost of a medical check-up to actual treatment and even beyond. *

  1. Scope of the insurance plan

The coverage of a standard health insurance plan is broad and has a more generalist approach to ailments. On the contrary, critical illness plans provide coverage for a specified list of illnesses, thereby having a narrower scope. However, the treatment cost of critical illnesses is sky-high and that’s when a dedicated insurance cover like a critical illness insurance help. *

  1. Benefits offered by insurance plans

Standard health insurance offers coverage in one of two ways—by way of reimbursement or by offering cashless treatment. Reimbursement is where you, the policyholder, need to pay for the treatment costs which are later reimbursed by the insurance company. For cashless treatments, the insurance company directly settles the medical bills with the hospital within admissible limits. Thus, you do not need to pay for the majority of the cost of the treatment. *

Critical illness plans do not offer either benefit, but instead, make an upfront payout of the sum assured. This entire amount is paid on diagnosis of the specified ailment as per the policy terms, helping you make the best available use of financial resources for the necessary treatment. *

  1. Premium

The premiums of standard health insurance plans are decided not just based on the policyholder’s age and other factors, but also on what is covered within the policy’s scope. Critical illness plans, on the other hand, have a limited number of ailments that are covered, so the premiums are at a lower level in comparison to standard health insurance. You can also use a health insurance premium calculator to see how different plans impact the premium calculator. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.


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