There are often a lot of technical terms that you will come across when getting health insurance. These jargons could be tough to understand and you need information regarding some to understand completely what your policy offers. The higher your knowledge of your insurance the better will be your chances of making a better decision. One of these jargons you may have come across would be deductibles, co-pay, co-insurance. While getting a health insurance policy you must be aware of what deductibles are being offered.
What are the deductibles?
A deductible generally is an amount that the person has to pay to the insurance company before they start paying up for your claim. This means that the insurance company is only liable to pay the claim when it is over the deductible amount. For example, if the deductible is let's say 20,000 and the claim by the insured person is of 50,000 then the insurance company is only liable to pay 30,000 Rs. This deductible amount is also the one which decides your premium amount. A high deductible amount has a lower premium amount while a low deductible has a high premium amount.
Having a deductible is important for a health insurance company as this way only genuine claims are raised and also people are a bit careful as they know some amount will also go from their pockets.
Types of Deductibles involved in a Health Insurance
This is a fixed amount by the insurance company which is must pay by the insured person whenever the claim arises. There is no lowering of the premium amount by this kind of compulsory deductible. In the case of a claim the insured person will only pay the deductible amount which has been set the rest of all the amount will be paid by the insurance company.
This is the type of deductible where the insured person gets to choose the amount, they are willing to pay as the deductible. The amount chosen depends on the insured persona according to the affordability and the medical expenses. This is variable and thus the amount of premium will depend on the deductible you are willing to pay. In this case, the person will only be liable to pay the voluntary deductible amount set by themselves when a claim is made.
This is a single deductible which is bound for all the covers you add into your insurance policy. It will keep adding until all the amount of the policy is paid.
This is the deductible valid to only specific covers. You need to play only before the claim is made to meet the medical expenses.
Why a Deductible is needed?
It makes sure that no unreasonable and unnecessary claims are raised.
This also induces a sense of responsibility among the policyholders thus they are more careful as the money will also go from their pocket. You can get health insurance online and read the document for deductibles.