7. Health insurance products tod

Question 1

What factors should be considered when thinking about health care?

Answer 1

• Legislation
• Key product features
• Underwriting
• Contract design
• Setting contributions or premium rates
• Provisioning
• Mutuality, solidarity and community rating
• Re
• Investment stratergy
• Types of entities providing cover
• Key risks
• Reimbursements mechanism
• Medical trends

Question 2

What is Private Medical Insurance (PMI) or medical aid?

Answer 2

• Cover of medical expenses incurred or access to healthcare benefits

Question 3

What is critical illness cover?

Answer 3

• Cover provides a lump sum benefit in the event of contracting a defined CI

Question 4

What is long term care insurance?

Answer 4

• Helps provide for care in old age
• With the extent of cover depending on the level of incapacity
• Measured through ADLs (Activities of Daily Living)

Question 5

What are cash benefits?

Answer 5

• Alternative to medical aid to help cover medical costs that may arise due to certain unexpected events.
• Major medical expenses
• Hospital cash plans
• Medical shortfall(gap) cover
• Personal accident