Do you know that you can buy some health insurance plans which provide you fixed benefits irrespective of your cost of treatment?
Do you know that you can buy some health insurance plans which provide you fixed benefits irrespective of your cost of treatment?
Insurance is a product which makes good for the financial loss which you incur in case of unforeseen adverse events such as health emergencies, accidents, thefts, natural disasters etc.
A typical insurance policy covering any adverse event provides you coverage which is limited to the extent of financial loss you incur due to that event. This kind of insurance policy is Indemnity Insurance.
Let’s consider your regular health insurance policy.
You bought a health insurance plan which covers you against health emergencies with a sum insured of Rs. 2 lakh.
In case you are hospitalised and you take a treatment which costs you Rs. 2 lakh, your health insurance policy will only pay you Rs. 2 lakh.
And to claim these 2 lakh rupees from your insurer, you will need to provide actual hospital bills as proof of the cost of your treatment.
Most health insurers have launched products such as Critical Illness Insurance and Cancer Care insurance which are Fixed Benefit products.
Let’s say you buy a Critical Illness insurance which covers 50 specified critical illnesses with a sum insured of Rs. 10 lakh.
Your insurer will pay you a fixed benefit of Rs. 10 lakh in case you are diagnosed with any of the critical illnesses specified in the list.
You can utilise this amount to take better treatment, pay your regular bills or any other purpose.
In this fixed benefit policy, diagnosis of illness is enough for you to raise a claim with your insurer. You do not need to provide the proof of any costs associated with your illness.
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