Is health insurance sufficient in relation to critical illnesses?

No. Health insurance relates to hospitalisation and medical bills. In contrast, critical illness insurance provides a lump sum to cover long-term costs and expenses, as well as non-medical expenses.

What is the fundamental difference between health & critical illness insurance?

Health insurance will reimburse you for your medical bills; meanwhile, critical illness insurance pays you a fixed lump-sum payment upon diagnosis with a specific serious illness that you can put towards treatment or any other significant expense.

Which illnesses are covered by critical illness insurance?

The policies will cover one or more serious illnesses listed on your plan. The typical severe conditions are cancer, heart attack, stroke, organ failure, or transplant.

Is critical illness insurance best as a standalone product?

Yes. A standalone plan provides full coverage rather than a rider with potential inadequacies.

Are there differences in premiums for critical illness versus health insurance?

Yes. Health insurance premiums will vary based on coverage, sum insured, and the number of family members covered under one policy. Critical illness premiums will vary by the number of covered illnesses and the sum insured.

Will I need to be admitted to a hospital to be eligible to claim on a critical illness policy?

No. You can claim on the policy with only a diagnosis; no hospital admission is required.

How long do health and critical illness insurance policies last?

The health insurance policy is renewed annually. Critical illness policies can last 20 years or more, depending on the premium paid.

Does critical illness insurance cover ongoing medical or hospital payments?

No. Critical illness insurance covers only serious illnesses listed in the policy, and pays a lump sum benefit for those illnesses. It does not provide coverage for other medical or hospital expenses.

What additional benefits does health insurance provide?

Health insurance often provides cashless treatment, maternity, ambulance, or pre- or post-hospitalisation benefits, wellness benefits, etc.

Is there a waiting period to claim on a critical illness insurance policy?

Yes, the waiting period for critical illness insurance policy can vary from 30 to 90 days, as per your policy terms.

Is critical illness insurance active after a claim?

No. Most critical illness insurance policies end after a claim is paid, as they just provide a lump sum payout for the covered illness.

Does critical illness insurance cover expenses other than medical expenses?

Yes, you can spend the lump sum on anything you need, like income loss, travel, home needs or anything that health insurance will not cover.

Difference Between Critical Illness and Health Insurance

Critical Illness Insurance vs Health Insurance

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Disclaimer:Tata Capital Limited (“TCL”) registered with IRDAI (License No. CA0896, valid till 21-Jan-2027), acts as a Corporate Agent “Composite” for Go Digit General Insurance Limited. Please note that, TCL does not underwrite the risk or act as an insurer. For more details on the risk factors, terms and conditions please read sales brochure carefully of the Insurance Company before concluding the sale. Participation to buy insurance is purely voluntary.

The Registered office of TCL is Tata Capital Limited, 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam, Marg, Lower Parel, Mumbai-400013.
The Registered Office of Go Digit: Go Digit General Insurance Limited, 1st Floor, Fairmont, Hiranandani Business Park, Powai, Mumbai – 400076.

Feature	Health Insurance	Critical Illness Insurance
Meaning	Covers hospitalisation and medical expenses arising from sickness, injury, or a surgical procedure.	Provides a lump-sum amount once a serious and critical illness is diagnosed, such as a stroke or heart attack.
Purpose	To avoid draining your savings to pay for hospitalisation, medical treatment, and medical bills.	To give financial assistance if you are diagnosed with a critical illness and are unable to work for an extended period while recovering.
Benefit Type	Covers reimbursement or cashless settlements for incurred medical expenses up to the policy sum insured.	A fixed lump-sum payout upon diagnosing a covered defined illness, not the cost of incurred claims.
Insurance Coverage	Preventive coverage for various forms of illness, accident, hospitalisation, day care and sometimes OPD treatment.	Coverage is limited to defined critical illnesses in the policy, including injuries to the brain, heart attacks, failure of the kidneys, paralysis or organ transplant.
Waiting Period	30 days	30 days to 90 days
Premium Amount	Premium cost depends on the sum insured, age, and medical history	Lower premium cost compared to health insurance
Sum Insured	Can range from ₹10 lac –₹1 Crore	Can range from ₹10 lac –₹1 Crore
Policy Duration	Renewed every year	This is available as a single fixed term for 5-20 years.

Critical Illness Insurance vs Health Insurance

Table of Contents

What is Critical Illness Insurance?

What is Health Insurance?

Difference Between Critical Illness Insurance and Health Insurance

Benefits of Critical Illness Insurance

Benefits of Health Insurance

FAQs about Critical Illness vs Health Insurance