Covid-19 has wrecked the life of many individuals, both emotionally and financially. An increase in this pandemic situation has raised awareness about health policies, especially among the youngster.
Health insurance is a protection scheme to safeguard you and your families against uncertain health hazards & manage your financial goals. However, buying health insurance is not rock science. If you are online, getting health insurance is just a click away!
With digital now becoming so handy, purchasing a health insurance policy has become easy, simple, and convenient. Yet, health insurance penetration is still low in India?
In our view, many individuals face problems with complicated terminologies used in insurance schemes. Therefore, to simplify your choices to purchase health insurance, we are presenting you six key terms to look at:
Premium
A health insurance premium is a predefined sum of money that a policyholder needs to pay in a given period and to their respective health insurance company.
A regular payment will help the individual avail the insurance coverage benefits & safeguard their interests, subject to the terms & conditions documented in the insurance policy.
Sum Insured
A sum insured is the agreed or maximum amount the health insurance company will pay in any uncertainty. For example, suppose you purchased an insurance policy, where the sum insured in the procedure is INR 10 Lakhs.
If your hospital raised an invoice for INR 12 Lakhs, then your insurance policy company will only pay you INR 10 Lakhs against the same & the remaining amount will be borne by you.
Co-Payment
Co-payment is a fixed percentage a policyholder needs to pay from their own wallet for every claim they make.
For instance, if the co-pay in your insurance policy is 10% of the total invoice, 90% will be paid by the insurer, and the policyholder will bear the remaining 10%.
Waiting Period
The minimum waiting period is mentioned in the insurance policy, before which the insurance company cannot pay the policyholder.
Usually, it's 30 days from the date the policy was issued.
Pre-Existing Conditions
Pre-existing conditions are the ailments or diseases that a policyholder received treatments for within 48-hours before purchasing a health policy with the health insurance company.
Before purchasing a health policy, disclosing any ailment or treatments a policyholder is going through to the insurer is recommended. Non-disclosure may reject your claims during medical emergencies.
Deductible
A deductible is the fixed amount a policyholder needs to pay each time they apply for a claim. For instance, if the deductible in your health policy is INR 20000, and you claim INR 100000, then the insurer will pay INR 80000 to the care provider.
On the other hand, if the claim is less than INR 20000, the insurer will not pay any sum.
FINAL THOUGHTS
Insurance is subject to market risks. Therefore, please read all insurance-related information very carefully ........
After every insurance or mutual funds-related ad, you might have come across these lines. However, we understand it isn't easy to read and understand every term & condition. Hence, follow our tips and never skip these pointers.
