Critical Illness Insurance Plans cover specific life-threatening diseases. These diseases could require prolonged treatment or even change in lifestyle. Unlike hospitalisation plans, the payout is made on Critical Illness cover chosen by the customer and not on actual expenses incurred in the hospital. The cover gives the flexibility to use the monies for changing lifestyle and medicines. Also it’s a substitute for income for the time you could not resume work due to illness. Payout under these plans are made on the diagnosis of the disease for which the original medical bills are not required.
Third Party Administrator TPA: A third-party administrator is a company that provides operational services such as claims processing and policy benefits management. Insurance companies often outsource their claims processing to third parties. Thus, such companies are called third-party administrators. Other insurance Companies have their in house Claims Administration. Third-party administrators are commonly used by health insurance providers, who outsource many of their administrative functions. Not only claims administration but premium billing, customer enrollment, handling policies, and other day-to-day operations are handled by a TPA.