Is Critical Illness Insurance Policy Better Than A Health Insurance Plan?

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Health insurance plans cover your medical expenses in case you are hospitalized due to an illness that was diagnosed after subscribing to the policy. Pre-existing illnesses are covered but only after the completion of a waiting period that usually varies from plan to plan. However, a regular health cover plan might not provide a sum insured that is sufficient enough to cover the expenses related to a critical illness. Therefore, many people prefer buying critical illness insurance to ensure that they receive a sum insured huge enough to take care of the entire treatment in case they are diagnosed with a critical illness. The main differences between health insurance plans and a critical illness cover are explained below:

Policy premium 

You might have to pay a much higher premium for a critical illness cover as compared to a regular health insurance policy. This is because the sum insured offered by a critical illness cover is much higher.


Also, upon the diagnosis of a critical ailment, the sum insured is paid as a lump sum payment whereas a regular health insurance plan will only reimburse the expenses that were incurred during your stay in the hospital. A comprehensive health insurance plan provides cover for pre and post-hospitalization expenses, accidents, daycare treatments, etc. 

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On the other hand, comprehensive critical illness insurance includes coverage for expenses that are outside the scope of a regular health insurance policy. For example, travel expenses, daily cash benefit to compensate the loss of income, and such other expenses may be covered by a critical health insurance policy. 


Some of the major benefits of availing of a health insurance plan are that it offers cashless treatments in the network hospitals and might cover other family members as well. The main benefit of availing of a critical illness cover is that it allows you to use the sum insured as per your requirement once you receive the lump sum payment. 

Waiting period 

A critical illness cover comes with a waiting period that is much less than the waiting period that health insurance plans require to cover pre-existing illnesses. 
However, regular health insurance plans do not have the restriction of survival period whereas the critical illness cover needs the policyholder to survive till a certain period after being diagnosed with a major disease or illness. This period is usually less and most critical illness cover will provide the sum insured after completion of 30 days from the date of diagnosis.

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