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B. Medical Insurance

What is Medical/Health insurance?


Medical/health insurance is a type of insurance coverage that indemnifies the insured person for the cost incurred for surgeries, hospital care, dental services and other types of health care services. Depending on the terms of the particular insurance policy, the insurers may reimburse the insured person upon receiving a claim, or the insurers may pay the healthcare provider directly after the insured person has already received the medical services.


Different types of medical/health insurance


It is important for consumers to understand basic concepts when shopping around for the most suitable medical/health insurance product that meets their needs.  Below are explanations of the common terminologies used on the market to describe different types of medical/health insurance:


Hospital cash insurance refers to policies that provide payment for income replacement or for reducing the burden of hospital expenses during the duration of the insured person’s hospitalization. This payment may be calculated on a daily basis and is usually non-accountable (i.e. the hospital cash may be used on anything not necessarily related to hospital expenses).


Personal accident insurance refers to policies that provide lump-sum payment upon the insured person suffering certain personal accidents, injuries, or death.  Payment is usually contingent upon the “trigger” event, i.e. the occurrence of the “accident” as defined by the particular policy, and may cover reimbursements of medical cost.  Most personal accident insurances are able to provide a single indemnity to the insured if he/she suffers permanent disablement or accidental death which would help cover the daily living expenses of the insured and his/her family.


Critical illness protection insurance refers to policies that provide lump-sum payment upon the insured person falling ill to certain catastrophic illnesses or medical emergencies.  Payment is not dependent upon incurred medical costs but is triggered by the occurrence of the specific illness covered under the policy. Coverage depends on the definition of critical illness and varies between products. 


Q&A on Medical Insurance