Why to buy health insurance and critical illness insurance policy separately?
Why to Buy Health Insurance And Critical Illness Insurance Separately
Posted On : 13 January 2021, 9 Months Ago. Health-Insurance
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Many wonder if they need to buy health insurance and the answer is that, yes, they do. A financial crisis is given with the possibility of getting an ailment and the constant skyrocketing of hospitalization expenses over the years. With the claims of the best health insurance plan, you can get through a myriad of health expenses when you're hospitalized. Nonetheless, if you buy critical illness insurance and are diagnosed with any life-threatening critical illness then you will be paid in a lump sum.


Differences between health insurance plans and critical insurance plans:


Both critical illness plans and a health insurance plan aim to serve different objectives. Therefore, it is imperative to buy health insurance as well as to buy critical illness insurance at the same time so that you can avail the maximum possible benefits from them.


The following are the differences between a health insurance policy and a critical illness plan and the need to be equipped with both of them:


1. Basic features - During your hospitalization, a health insurance plan will reimburse your OPD and medical expenses. However, it doesn't cover every disease and has a long waiting period. On the other hand, a critical illness plan covers any life-threatening disease such as multiple sclerosis, bypass surgery, kidney failure, cancer, and many more. If you are diagnosed with any given critical illnesses, then you will immediately receive the cover amount.


2. Coverage - A critical illness plan and a health insurance plan provides different types of coverage. While health insurance plans cover several ailments and accidents. After a given period, it also covers maternity health and already existing diseases. Whereas, a critical illness plan covers a specific list of life-threatening ailments that varies according to the insurer's requirements. Depending on the policy, it even covers postoperative care, loss of payment, travel, and boarding temporarily.


3. Benefits - By availing a health insurance plan, you can receive the reimbursements of expenses of hospitals and availing the cashless facility while getting treatment at any network hospital. Additionally, every year it can also be renewed. On the contrary, while availing of a critical illness plan, you receive the lump sum cover amount that is tax-free. There is no requirement for original bills, instead, photocopies of them can be presented. As the entire cover amount is received by you, you can squander it however you like. Further, if a claim has been made the policy expires.


4. Waiting period - If you buy critical illness insurance or buy health insurance, you are required to follow a waiting period. Except for any loss related to accidents, if you buy health insurance, then you are required to observe the waiting period of 30 days after signing the policy where any expense of hospitalization during the period cannot be reimbursed. Additionally, for availing reimbursements for any diseases that were pre-existing, a certain waiting period from 1 to 4 years need to be obeyed. On the other hand, is a critical illness plan, the waiting period is generally 3 months and any diagnosis within this window isn't available on the cover.


5. Sum assured - Although the sum assured varies for different insurers, there are a few limits to them. In the case of most health insurance plans, a maximum of Rs 5 Lac is provided as cover. Whereas, if you buy critical illness insurance then the ranges from Rs 5 Lacs up to a maximum of Rs 50 Lacs.


Why to buy Health insurance & Critical Illness Insurance Separately?


This is a crucial difference to note for all policyholders. Health insurance covers a variety of expenses such as hospitalization expenses, but in many cases, it does not cover critical illnesses and their treatment expenses. This can come as a shock to someone assuming that health insurance is a one-stop solution to their medical expenditure needs. Therefore, it is important to have cover for both these situations, and purchase both health insurance as well as critical illness insurance.




Buying health insurance plans are critical to safeguard yourself and your family from the rise in medical inflation. This is where family health insurance comes in aid for you and your family members. However, the health insurance premium of most health insurance plans is difficult to afford by many, which is why you are at least advised to be equipped with individual health insurance. As both types of insurance policies vary from one another and serve a different purpose, thus, choosing right health insurance plan is as important as buying critical illness insurance plans.

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