Types of Deductibles in Health Insurance
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Health insurance is crucial to ensure your finances remain safe despite any medical emergency that can occur unexpectedly. Before you opt for a health cover, getting adequate details about the available health policies and thoroughly reviewing your needs helps you make the right decision. Understanding health insurance deductibles and types of deductibles is crucial to ensure how much claim amount you will receive when you file for it.
A health insurance deductible is a pre-defined amount you have to pay from your pocket for your medical expenses before getting the claim under medical insurance from the company. It is the part of the claim that you have to pay each year every time you make a claim. The health insurance company will bear the rest up to the policy limits.
Generally, the higher the premium amount, the lower the amount of deductible the person must pay. In the case of a lower monthly premium, there is a likelihood that the insured person may have to pay a higher health insurance deductible.
Let us understand health insurance deductible with an example.
>> Rahul purchased an individual health policy. He raised a claim amount of Rs 40,000. The health insurance deductible set by the company is Rs 10,000. In such a case, the company would bear Rs 40,000 – Rs 10,000 = Rs 30,000, and Rahul will pay a deductible from his pocket.
>> In another instance, he makes a claim worth Rs 10,000, and the deductible amount is Rs 15,000. Here, the insurer will not pay anything as it is liable to make payment only when the claim amount is higher than the deductible amount.
In India, health insurance deductibles are of the following types, namely:
When choosing cashless medical insurance, one should assess the covers that include or do not include deductible payments and the exact amount and time intervals for making these payments.
The amount of deductible the insured must pay is mentioned in the policy terms and conditions. Let's understand its significance:
The deductible is calculated after considering insurance coverage, income, the sum insured, etc. It may vary from plan to plan. When deciding on a health policy, keep in mind the deductible as a critical factor. But, if the question of what to choose a higher or lower deductible scorches your mind, read below:
While understanding the concept of health insurance deductible is vital, the factors impacting its calculation are equally essential. Below are some common points consider while deciding the deductible amount:
If you haven't opted for health insurance yet or your renewal is due, think about how a deductible can be beneficial for you. Get the best health policy from Care Health Insurance at an affordable premium and deductibles to minimize the burden of high treatment costs.