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In A Health Insurance Policy, There Are A Few Key Terms To Know.

Published On Mar 25, 2022

Now that you've decided to get health insurance, be aware that you'll come across a bewildering number of phrases when doing so. In all of their health insurance plans, health insurance firms utilize a wide variety of terminology. Understanding all of these words is critical to avoid confusion throughout the purchase or claim process. Remember that not understanding the health insurance terms can lead to disappointment since being confused between the terms or not reading the terms to get a policy in a hurry could result in your medical requirements not being covered, even after paying a considerable sum of money. Remember that learning as much as you can about health insurance phrases can help you. So don't dismiss it as a waste of time and attentively read each word. You never know which word will come in handy. Here are a few health insurance phrases you should be familiar with to make an informed decision.

In A Health Insurance Policy, There Are A Few Key Terms To Know.

Term Definitions for Health Insurance

A few crucial health insurance phrases to be aware of are listed below:

  • Co-Financing 

A co-payment is the portion of a claim that a policyholder is responsible for while the remainder is paid by their health insurance provider. In other words, treatment costs are split between the policyholder and the health insurance company in co-payment plans. The co-payment is usually expressed as a percentage.

  • Bonuses Added Together 

The cumulative bonus is the amount of money accrued in a health insurance plan throughout several claim-free policy periods.

  • Cash in the Hospital Every Day 

Daily Hospital Cash is a type of insurance in which the insured receives a fixed monetary payment for each day spent in the hospital. At the time of policy acquisition, the exact amount of daily hospital cash is determined. Daily hospital cash is available as a stand-alone policy or as an add-on to normal health insurance plans.

  • Free Look for a Limited Time 

In a health insurance policy, the free look period refers to the period during which a policyholder is free to shop for plans from other health insurance firms. The policyholder can cancel their coverage during the free look period, which usually lasts 10-15 days from the date of purchase of the health insurance plan.

  • Grace Period 

In a health insurance policy, the grace period is a set amount of time after the policy's renewal premium is due. A policyholder has the option of paying their insurance payment during the grace period without losing coverage or having their policy lapse.

  • Bonus if you don't make a claim 

The No-Claim Bonus is a bonus offered by health insurance companies to policyholders for each year in which they do not file a claim. Policyholders might get a bigger sum insured for the same premium in the next year because of this benefit.

  • Insured Refill Sum 

Filing a claim may result in the sum insured amount being depleted. The restoration of the sum insured amount is possible with the refill sum insured benefit or reload of the sum insured. Your depleted sum insured is reinstated with the refill or reload facility. However, there are certain restrictions. Keep in mind that for the refill sum insured option to work, the amount insured must be completely depleted.

  • TPA (Transportation Policy Act) 

Every hospital and healthcare facility has a TPA, or third-party administrator, department. It is the entity in charge of processing insurance claims that are covered by the policy. You may quickly submit your health insurance information to the TPA to file a claim. Whether it's a cashless or reimbursement claim, insurance documentation must be submitted to the TPA.

Take Away

When shopping for health insurance coverage, make it a point to seek all of the above-mentioned common yet important phrases. Rest certain that understanding these phrases will assist you in distinguishing between suitable and inappropriate insurance, allowing you to make an informed decision.

Also read- How to Save Money on Health Insurance in a Simple Way

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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.

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