Critical illnesses are diseases and conditions that include but are not limited to cancer, stroke, organ transplants, and kidney diseases, among other health conditions. Critical illnesses are expensive and disruptive.

Begin diagnosed for critical illness means completely wiping away the lifetime savings. So, then your worries regarding the financial security and dependents start haunting you. The only way to get out of this dilemma is a“Buy Critical Insurance Plan.”

Do not let unseen happenings to shatter dreams of you and your family, instead start planning for such incidents. Critical Illness Insurance Plans provides coverage against specific threatening diseases. Treating these illnesses, you may require multiple visits to the hospital over a period of time. Thus, in addition to the hospitalization cost, there will be other costs like doctor visits, medical expenses, etc.

A Critical Illness plan pays a lump sum amount that can be used to cover these high expenses. The lump-sum payout will be an addition to mediclaim or health insurance policy that you may already have.

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Do you feel lost when an insurance provider starts talking about health insurance? When he uses the fancy jargons involved with health insurance? It’s OK—we know that the terminologies regarding health insurance can be hard to understand. Hence we have come up with these few terms that are often used with health insurance:

1. Allowable charge: it is also known as “allowed amount,” “maximum allowable,” and “Usual, Customary, and Reasonable (UCR)” charges, this is a fee that is charged by a health insurance company to be a reasonable charge for medical services or supplies based on the area where the service is being provided.

2. Benefit – the amount payable by the insurance company to a policyholder for medical costs.

3. Benefit level – the maximum amount that a health insurance company agrees to pay to the policyholder.

4. Benefit year – the 12 months for which health insurance benefits are calculated, not necessarily coinciding with the calendar year. Health insurance companies may update plan benefits and rates at the beginning of the benefit year.

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Like other plans, an Indemnity plan will reimburse the cost of medical expenses to the policyholder. This plan will refund the actual amount incurred as an expense during the medication, and the reimbursed amount should be within an assured medical cover.
Indemnity health plans are also known as:

1. Traditional indemnity plan
2. Fee- for service plan

For example, the cost of cover is Rs 5 lakhs, and a hospital billing amount is Rs 2 lakhs. The company has to pay Rs 2 lakhs to the policyholder. The balance amount is left with the company until the maturity of the policy.
And this agreement with the company will be predetermined. The best example is the “Mediclaim Insurance Plan”- a popular health product.
Generally, this plan has a predetermined deductible. The part of medical expenses will be paid to the policyholder, and the insurance company will pay the remaining amount, and this is “co-pay.” Some health insurance plans will not have any deductibles, where the insurance company will incur the entire cost.

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