Health insurance is a standalone policy that offers coverage for the expenses that you incur towards the treatment of diseases and medical conditions. On the other hand, critical illness insurance is an add-on cover that you can opt for over and above a standalone health insurance plan by paying a nominal additional premium.
While health insurance is designed to only cover healthcare expenses, a critical illness cover is designed to offer a lump sum payment upon diagnosis of any of the critical illnesses covered. Also, with a health insurance plan, you can make multiple claims till you exhaust your sum insured amount. However, with a critical illness cover, you’re allowed to make only one claim, after which the cover ceases.