Critical Illness cover different from normal health insurance
Critical illness cover is a fixed benefit policy. It can either be offered as an add-on to your existing policy or it can be purchased as a standalone plan. In case the policyholder is diagnosed with an illness covered under the critical illness policy, the insurance company will provide a lump sum payout as per the terms & conditions of the plan. The policyholder is free to use this amount as per his/her needs, both medical and non-medical.
A health insurance policy, on the other hand, does not provide any lump sum payments, and cannot be used to cover non-medical expenses.