5 Must Know Health Insurance Terms
Table of Contents
Buying health insurance for yourself and your family is important because medical care is expensive especially in private hospitals and health care institutions. There is a high chance that without insurance medical emergencies can become a financial crisis anytime, that's when it becomes important to buy a health insurance policy. But when looking for a new individual health insurance plan, one of the main challenges people face is understanding the sea of acronyms and terminologies. In this article, we will help you understand all the basic health insurance terminologies.
5 Must-Know Health Insurance Terms
Health Insurance will allow you to get the best treatment and medication in case of an illness or medical emergency without having to worry about the cost associated with it but before you apply for an insurance policy, you need to understand the health care terms associated with it. Below mentioned are some you need to know:
1. Sum Insured
Sum Insured refers to the maximum value that you can claim from your Insurance Company in case you are hospitalised. Any amount above and beyond the sum insured will have to be borne by you. The amount you agree on the sum insured will be the maximum amount you receive in case of medical treatment or hospitalisation. It works on the principle of indemnity that means it will cover the loss arising out of the damage caused to you. It is the compensation received for damage, injury, or loss suffered by you.
2. Riders
A rider is an insurance policy provision that adds benefits to the policyholder by allowing them to change or amend the terms of the given insurance policy. Riders provide the insured party the option to add additional coverage, or they may even restrict or limit coverage. Some people looking to buy insurance policy have specific needs which may not be covered by standard insurance policies so riders help them create insurance products that meet their needs. Also important to note here is that there is an additional cost if a party decides to purchase a rider.
3. Top-Up
Top-up plan is basically an add-on plan to your regular health insurance plan, it offers you an additional cover when you exhaust your basic cover limit. A top-up plan increases the coverage above your existing base policy at a comparatively lower cost as compared to increasing the sum assured in the base policy.
4. Network Hospitals
A network hospital is a hospital that ties up with your insurance provider either directly or through TPA and allows you to avail cashless medical treatment. Insurance Companies have a list of network hospitals where you can claim for cashless treatment without any hassle.
5. Co-Payment
Companies offer policies with a co-payment facility where you need to pay some portion or percentage of the amount at the time of claim that means both you and your insurer share the cost of your medical expenses. Policies with a co-payment option come with less premium amount but also you need to pay some part of the claim from your pocket.
Conclusion
You have plenty of options when it comes to purchasing health insurance for you and your loved ones and also a large number of facilities and policies offered by the companies but before buying a health insurance plan, one should search and compare different policies but to compare and buy a health policy one should have basic knowledge regarding health policies and acronyms and terminologies related to it.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
