Many people confuse critical illness cover with health insurance. They are fundamentally different products designed for different risks.
Health Insurance (Indemnity Policy)
Reimburses your actual hospital bills - doctor fees, surgery, ICU, medicines. Cashless at network hospitals.
Covers: Hospitalisation expenses Does NOT cover: Income loss while sick, travel costs, home care, EMI payments
Critical Illness Cover (Benefit Policy)
Pays a fixed lump sum on first diagnosis of a listed illness - regardless of actual hospital expenses.
Covers: Cancer (major), heart attack, stroke, kidney failure, major organ transplant, and 10+ more How it pays: Rs 10-25 lakh deposited in your bank within 30 days of confirmed diagnosis
Why You Need Both
After a cancer diagnosis:
- ▸Hospital bill: Rs 12 lakh (health insurance covers this)
- ▸6 months income loss: Rs 3 lakh (not covered by health insurance)
- ▸Travel for treatment: Rs 1 lakh
- ▸Post-treatment care: Rs 1 lakh
- ▸EMI payments during recovery: Rs 1.5 lakh Total need: Rs 18.5 lakh - health covers Rs 12 lakh, CI fills the Rs 6.5 lakh gap
Recommended Stack
| Cover | Product | Annual Premium (approx) | |---|---|---| | Hospitalisation | Star Health Rs 10 lakh floater | Rs 12,000-18,000 | | Critical Illness | LIC Cancer Cover 905, Rs 25 lakh | Rs 6,000-9,000 |
Total: Rs 20,000-27,000/year for comprehensive coverage.
Call Ajay Kumar Poddar at 9415313434 to build your health insurance stack.
