Private Medical Insurance vs Critical Illness Cover

Private medical insurance and critical illness cover are different products. Private medical insurance may pay for eligible treatment under its policy terms. Critical illness cover is designed to pay a benefit if you meet the policy’s definition of a specified serious illness; it is not a general fund for any diagnosis.

Compare the benefit, not just the name

For medical insurance, check covered treatment, exclusions, excess, limits and authorisation requirements. For critical illness cover, check the illnesses listed, the policy definitions, survival period if applicable, exclusions and how the benefit is paid. The wording determines whether a diagnosis meets the definition.

Why people may compare both

They address different financial needs: access to eligible treatment versus a specified financial payment after a qualifying diagnosis. One does not automatically provide the protection of the other.

Does critical illness cover pay for treatment?

The policy pays according to its contract; do not assume the benefit is restricted to treatment costs or replaces medical insurance.

See our health insurance comparison guide.

Sources checked 18 October 2026: ABI: Private medical insurance · ABI: Protection and health insurance