Question

What is the benefit of Critical Illness Assurance policies paying hospitals directly?

a.

It reduces the premiums for policyholders

b.

It avoids policyholders incurring out-of-pocket expenses

c.

It increases the sum assured for policyholders

d.

It allows policyholders to choose any hospital for treatment

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).It avoids policyholders incurring out-of-pocket expenses Explanation:Critical Illness Assurance policies paying hospitals directly avoid policyholders incurring out-of-pocket expenses, as the payment is made directly to hospitals for treatment costs.

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Q. What is the benefit of Critical Illness Assurance policies paying hospitals directly?
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