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The Insurance Times

 Some examples of when the products are hospital daily cash allowance,
convalescence or recuperation benefit, surgical benefit.

Disability benefit plans-income protection plans
 Disability benefit plans are also known as income protection plans.
 Instead of reimbursing expenses for hospitalisation these policies reimburse the loss

of income due to the injury or illness. These are very similar to loss of profit policies
the differences being these policies reimburse for loss of income.
 These plans are benefit plans and any person can take more than one plan and
conditions of average do not apply.
 Under the policy the insured may choose the amount of benefit it requires in case he
is incapacitated.
 In India this product is available as a rider to personal accident policies(Nonlife)
and as a rider in life insurance policies known as accident and disability benefit rider.
 This plan provides for a fixed income during the period of illness due to accident
subject to maximum payment as specified in the policy.
 If the illness is due to ill-health no amount would be paid under this policy. Accident
is compulsory for payment under this policy.

Long-term care plan
 This plan is a type of benefit plan designed for taking personal or nursing care for

people who are unable to look for themselves.
 Individuals who require long-term care are generally not sick in the traditional sense,

but instead, are unable to perform the basic activities of daily living (ADLs) such as
dressing, bathing, eating, toileting, continence, transferring (getting in and out of a
bed or chair), and walking.
 Object of long-term care insurance is to indemnify the insured for additional cost
when they need long-term care.

128 Guide for Health Insurance