Difference Between Health Insurance and Critical Illness Insurance

Health Blog
21 Jul 2024
150 Viewed

Contents

What is a Critical Illness Policy?
How to File a Claim?
Which Insurance is Better: Critical Illness Cover or Health Insurance?

We're sure that this thought must have crossed your mind many times. But, do you have the appropriate answer yet? Worry not. We're here to care for you and help you root out the worries of your life.

It is always better to have clarity when it involves investing your hard-earned money. And we understand how important it is for you to be aware of all the coverages, features, exclusions and claim process of a certain health insurance policy, so that you can make an informed decision of investing in the right insurance plan.

What is a Health Insurance Policy?

A health insurance policy is a contract between you and an insurer that covers medical expenses incurred due to illness, injury, or hospitalisation. It helps reduce out-of-pocket healthcare costs and includes benefits like hospital stay, surgeries, doctor consultations, and diagnostic tests.

Plans by trusted insurers like Bajaj Allianz General Insurance Company offer wide coverage, including access to over 18,400+ network hospitals. Depending on the plan chosen, policies may also offer pre and post-hospitalisation coverage, day-care procedures, and wellness services. Health insurance is essential for ensuring timely and affordable care.

What is a Critical Illness Policy?

A critical illness policy provides a lump-sum payout upon diagnosis of specific life-threatening diseases like cancer, heart attack, kidney failure, or stroke. Unlike standard health insurance, it doesn’t reimburse bills—it provides funds you can use as needed, whether for treatment, home care, or income replacement. Products like Criti Care are Critical Illness Plans from Bajaj Allianz General Insurance Company tailored to protect your finances during a major health crisis, especially when treatment costs are high or recovery takes time. This type of insurance ensures peace of mind during medical emergencies.

Key Difference Between Health Insurance and Critical Illness Insurance

Here's a table of differences between regular health insurance and critical illness cover that can help you get the clear picture.

Point of Difference	Regular Health Insurance	Critical Illness Cover
Coverages	A regular health insurance policy covers you for: Hospitalization expenses Doctor's consultation fees Ambulance services Treatment charges Pre & post hospitalization expenses Cost of check-ups and investigations Cost of medicines	A critical illness cover provides coverage for a specific set of major illnesses. With our critical illness policy you get coverage for 10 illnesses: Cancer Coronary Artery Bypass Surgery First Heart Attack (Myocardial Infarction)Kidney Failure Major Organ Transplant Stroke Aorta Graft Surgery Primary Pulmonary Arterial Hypertension Multiple Sclerosis with Persisting Symptoms Permanent Paralysis of Limbs
Payout	A normal health insurance policy will pay for the expenses incurred for a medical treatment and your SI will change accordingly.	A critical illness insurance will pay you a lump sum amount once any of the listed critical illness is diagnosed and then the policy will cease to exist.
Number of Claims	You can make multiple claims with your health insurance policy and also top it up with add-on covers like our Extra Care Plus policy.	You can make only a single claim during the policy duration, after which the policy will cease to exist.
Policy Term	A regular health insurance policy has the policy term of 1, 2, 3 years. So, if you get a health insurance policy for 3 years, then it will need renewal once in 3 years.	The critical illness policy is an annual policy and it needs renewal every year. This policy comes with the benefit of lifetime renewal option.
Cashless Claims	You can avail the benefit of cashless claims at network hospitals with your regular health insurance policy.	The critical illness policy is an annual policy and it needs renewal every year. This policy comes with the benefit of lifetime renewal option.
Premium Amount	The premium costs of regular health insurance plans are a little on a higher side as they provide extensive coverage.	The premium rates of a critical illness plan are comparatively lower as the coverage is limited to the number of illnesses covered in the policy.

We're sure that this comparison must have cleared many of your doubts. However, if you still have some questions, do not hesitate to get in touch with us either online or offline (customer care executives).

You can also read our brochures published on our site and get a deeper knowledge about the various health insurance plans various health insurance plans. We hope that knowledge about the various health insurance plans various health insurance plans. We hope that this has helped you decode health insurance meaning & decipher critical illness insurance plans. Now you can make an informed decision and buy a regular as well as critical health insurance plan to safeguard yourself and your family members from any unexpected financial burden that medical emergencies might bring.

And remember that we're here for you & are caringly yours. So don't be hesitant to reach out to us in case of any difficulties.

Read More: What is TPA in Health Insurance?

How to File a Claim?

To file a health insurance or critical illness claim, follow these steps:

Notify the insurer immediately (in case of hospitalisation).
Submit required documents – claim form, ID proof, doctor’s advice, medical bills, etc.
For critical illness, submit diagnostic reports confirming the illness.
Choose between cashless or reimbursement mode.
The insurer will verify and approve the claim as per policy terms.

Using the Bajaj Allianz General Insurance Company’s Caringly Yours app simplifies the process with easy uploads and real-time updates.

Which Insurance is Better: Critical Illness Cover or Health Insurance?

Both serve different purposes. Health insurance manages routine and emergency medical expenses, while critical illness cover offers a lump sum upon diagnosis of specific serious illnesses. Ideally, combine both for holistic protection.

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