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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 health coverage, 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. Deductible in insurance could either be beneficial or disadvantageous depending upon the scenarios.
Health Insurance deductible definition could get confusing if not explained nicely. One should know that a health insurance deductible is a pre-defined amount you must 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 you must pay yearly 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 policy’s deductible. 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 what is deductible in health insurance 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 would 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 exceeds 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. Remember, the deductible is critical when deciding on a health policy. But, if the question of what to choose, a higher or lower deductible, scorch your mind, read below:
While understanding the concept of health insurance deductible is vital, the factors affecting its calculation are equally essential. Below are some common points to consider while deciding the deductible amount:
If you still need to opt for health insurance or your renewal is due, consider how a deductible can benefit you. Get the best health policy from Care Health Insurance at an affordable premium and deductibles to minimise the burden of high treatment costs.
If you ever come across the abbreviation DED while buying insurance, it simply means deductible.
The deductible is the sum of money you consent to fork over throughout the claims procedure (per the terms and conditions). For instance, regardless of whether the claim is for Rs 10,000 or Rs 1 lakh, you must pay this sum if your insurance policy has a Rs 5,000 deductible provision.
Ideally, a 10% deductible in health insurance is recommended. For example, Your surgery costs 1Lakh, and you have to pay 10% out of your pocket as a deductible, and your insurance provider will pay the rest of the cost, i.e. 90 Thousand.
^^Number of Cashless Healthcare Providers as of 30th June 2023
**Number of Claims Settled as of 31st May 2023
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