Critical Illness Cover vs Health Insurance: Key Differences Explained

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: 1. Hospital bill: Rs 12 lakh (health insurance covers this) 2. 6 months income loss: Rs 3 lakh (not covered by health insurance) 3. Travel for treatment: Rs 1 lakh 4. Post-treatment care: Rs 1 lakh 5. 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.