There are two types of medical insurance policies: indemnity and benefit.
Indemnity health insurance: Indemnity plans coverhospitalization costs. These plans reimburse your hospitalization costs up to the sum-insured amount you choose when one takesa policy. If the insured is admitted to a hospital that is part of the insurer’s network, they will have to pay nothing out of your pocket, except the deductible under the policy, if any. They can enjoy cashless hospitalization.
Benefit health insurance: A benefit health insurance plan covers expenses that the indemnity health plan does not. Benefit health insurance policies pay the insured individual a lump sum if they are diagnosed with a disease covered under the plan. A common type is the critical illness plan. Aegon Life, for instance, has a critical illness plan called the iCancer Plan.