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What is the Difference between Health, Critical Illness & Cancer Insurance Plan?

May 24, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

‘Health Insurance’ is one of the buzz words these days thanks to Budget 2018, and govt of India’s emphasis to offer basic health care to millions of Indians. Keeping the government’s directives in mind, it is imperative to understand what is health insurance these days. Moreover, understanding the difference between critical illness cover and cancer insurance will help you make the right choice when it comes to securing the health of your loved ones. 

What is health insurance and why do we need it?

According to research, majority of people spend a fortune on treating critical illnesses and medical emergencies. Since incidents like these cannot be predicted, people who face these situations are barely ready and the aftermath of emergency lands them into financial crisis.

On the flipside there are people who blame the insurance companies for selling them policies which proved futile during the time of emergencies. Technically, no insurance policy can be termed as useless or futile, only the people who buy insurance without proper knowledge or the right information are the ones who develop this opinion.

Majority of the insurance companies suggest that a person should have at least Health and Critical Illness & Cancer Insurance Plan. These plans can offer a significant cover amount to the insured in an event of major illness or medical emergencies, saving the person and his family from the financial breakdown. Though they cover the same issues for an individual, they are totally different in their functions and procedures.

Here is the difference between Health Insurance, Critical Illness Insurance and Cancer Insurance:

Type of insurance

What does it cover

What it does not cover


Health Insurance: Health insurance is a basic cover which can be availed by any individual from an insurance company. It is a basic protection plan which can assure reimbursement of hospital and medical expenses or a free medical treatment.


Health insurance benefits come by the insurer covering most of the rising cost of hospitalization, treatments, diagnosis, and medical-aid. These are the factors which can cost you or your family a substantial amount of money.

However there are some companies that cover only surgical expenses and might not cover the room and hospital expenses, so you need to be very careful while purchasing health insurance.


The basic health insurance policy can be purchased for anyone irrespective of age (some companies do have age bar). Health insurance has low premiums and paying them is usually not a tumultuous task, with the rising health issues and medical expenses it is recommended to opt for at least a health insurance.

Critical illnesses Insurance:  The effect a critical illness can bear strains on your savings, which is a common factor across the board. Illnesses and diseases like Coronary Artery Disease, Stroke, and Fulminant Viral Hepatitis worsen to the extent that they require specialized procedures. Since covering them with a basic health insurance might not be adequate, you might need a policy that provides a larger cover amount. At this point, you might realise the importance of Critical illnesses Plan.

Once the illness and its extent get detected, the insurance company is liable to pay the insured individual the amount required for the necessary medical procedures. The money gained from insurance can be used for on-going medical expenses or it can be used to cover the aftermath of the disease.

There is but one condition in critical illness insurance which might not make sense to many but is agreeable in some terms; the critical illness insurance only covers those diseases which are mentioned in the policy documents.

Anyone can apply for critical illness insurance, especially those individuals who feel they are prone to these kinds of illnesses. You can also apply for a health insurance for additional cover

Cancer Insurance: Since cancer is one of the most lethal diseases known to mankind, its treatment is considered expensive and not affordable for many. It can be a really bad plight for a victim or a sufferer to fall short of money during a cancer treatment as cancer requires continuous treatment involving complex procedures. Cancer Insurance offers financial cover to the insured once the cancer is diagnosed.

Cancer insurance covers the insured in all stages of cancer i.e. Pre-stage, Early stage and Major stage.

As the name specifically mentions ‘Cancer’, it does not cover any other diseases or ailments.


Anyone can avail cancer insurance but it is recommended that you buy a healthcare insurance for additional cover.



It is always better to be safe than sorry when it comes to choosing the right type of health insurance. So, go ahead and buy the correct health insurance plan today!

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Advt. no.: IA/May 2018/3973


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