Fixed benefit plans cover the risk associated with a rare critical illness and provide predetermined sum insured upon diagnosis of few covered conditions. Payment under fixed benefit plans is usually made upon diagnosis and is not linked to the medical expense that the life insured may incur for treatment of such condition. Such plans help one to compensate for loss of income that arises due to long period of treatment and recuperation that may be required. Such policies pay the benefits only once and then the cover ceases. Reimbursement plans provide for reimbursement of actual medical expenses incurred in a hospital. These medical expenses could range from low amounts incurred in treatment of common ailments like malaria or dengue to significant expenses incurred in treatment of critical illnesses. Such policies do not cease on payment of claim once and continue to pay the claims every year subject to continuous renewals. View more