Difference Between Health Insurance & Critical Illness

There is a difference between a health insurance policy and critical illness insurance policy.

A health insurance plan would reimburse the hospitalization expenses for any illness, disease or injury till the time the policy is in force and live. A health insurance policy would  continues to be in force even after a single claim or a multiple claim has been made  and will remain in force until you exhaust your insured amount.

On the other hand a critical insurance policy covers a pre-defined/ pre-specified condition of illness only. The conditions or illness to be considered as critical illness is very clearly defined in the insurance policy. Critical illness policy will not cover other diseases or injury. The other difference is that once it is established that insured is suffering from critical illness and covered in the insurance policy the sum or benefits will be paid by the insurance company immediately and the after the payment the policy will cease to exist, you cannot claim more from the insurer, But some insurance companies may offer to cover with a new or revised insurance premium rates.

A critical illness cover can be clubbed or added to a life insurance policy by paying an additional premium as add-ons.

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