Fixed benefit health insurance plans

The fixed benefit health insurance plans offer a fixed, lump sum amount to the insured which is equivalent to the sum assured of the policy if the policyholder suffers from the ailments covered under the plans. The payment of fixed amount is guaranteed under the policy, notwithstanding the actual expenses incurred on the hospitalisation and treatment of the insured.

The fixed benefit health insurance plans are available for specified critical illnesses as also as cancer or heart insurance plans separately or as daily hospital cash plans. Depending on one’s requirement, one can choose any of these products and get covered against major illnesses. When the insured suffers from any illness(es) covered under the plan, he/she becomes entitled to receive the entire sum assured under the policy as a lump sum. Once the insurance company pays the sum assured to the insured, the insurance policy is terminated. In which case, the insured will have to buy a new policy to continue with the insurance coverage.

A major difference between the regular indemnity-based health insurance policies and the fixed benefit health insurance plans is that the insured person under fixed benefit health insurance policy can utilise the claim amount as he/she deems fit. Also, unlike the regular health insurance plans, there are no sub-limits in fixed benefit plans such as cap on room rent, co-payment, disease-specific sub-limits, etc. Moreover, any policy amount that is in excess of the actual cost of hospitalisation and treatment can be utilised to personal expenses such as household expenses, travel expenses, children’s education, etc.

The fixed benefit health insurance policies are competitively priced, making them quite affordable. These policies can also be renewed without any hassles every year.