Know The Jargons Before Buying Health Insurance
Updated On Jun 11, 2021
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Buying a health insurance policy is essential and is a wise decision to make at an early age. It protects you and your loved ones from financial instability at times of an emergency. It covers your hospitalization expenditures and ensures your quality treatment.
There are a plethora of options to choose from in the insurance company. Therefore, the policy buyer must have done an ample amount of research to choose the best one for themselves. However, many times people tend to be confused because of the technical jargon and a lot of documentation involved in the process. This makes them dependent on some service agents for their help which increases their spending on the insurance policy.
Jargons You Must Know While Buying A Health Insurance Policy
You must have been planning to buy a health insurance policy for a while now, but the occurrence of the technical terms in the documentation process would have demotivated you from choosing the desired policy. Therefore, let us look at some of the most used jargons while purchasing a health insurance policy:
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Waiting Period
This is a period specified by the insurer during which you cannot claim the amount of the health insurance policy bought. The duration of this waiting period differs from one company to another. In the case of the initial waiting period, if you get hospitalized within the first 1-3 months after buying the policy, then your amount will not be claimed unless it is an accident. The waiting period for a pre-existing illness varies from 1 to 4 years. And, in case of a specified illness, the waiting period varies from 1 to 2 years which is determined by the insurer. -
Co-Payment
When you file a claim, a part of the claim has to be paid by you, this payment is called co-payment. It is of two types. One is compulsory co-payment, which specifies the amount that the policyholder has to pay and another one is voluntary co-payment, in which the policyholder pays their share of payment according to their will. -
Deductible
It is defined as the amount of loss borne by the insured after which the insurance starts. This amount can be a percentage of the claim amount or a certain money amount. The increase in deductible decreases the premiums. -
No Claim Bonus or NCB
It is a bonus or a discount on the basic premium if the policyholder does not make a claim for a year in the cover. It gets added up each year that the policyholder does not make a claim. -
Free-Look Period
Every policy comes with a free-look period of 15 days from the date of receiving the policy. Sometimes you might buy a certain plan on someone’s suggestion and later realize that the T&Cs do not suit your demands. Then you have the provision of changing the plan within the duration of the free-look period, after which the company will return the premium after deducting a certain amount. -
Cashless Claim
In this mode of claim settlement, the policyholder can make a claim without paying any cash for medical assistance at the linked hospitals. -
Exclusions
Exclusions are the medical conditions or the situation under which the claim or the benefits of the health insurance policy cannot be availed. One should thoroughly go through the exclusions mentioned in their policy as it is vital. -
Floater Policy
A floater policy is a single policy in which the sum assured covers a number of individuals. For example, a family floater insurance cover includes 4 members of the family under one sum assured. -
Overseas Mediclaim Policy(OMP)
This type of policy is issued to people who have to go abroad for business trips, pleasure, or educational purposes.
Also Read: All About Health Insurance Tax Benefits
Top 5 Health Insurance Plans That You Can Buy In 2021
Conclusion
Next time you want to buy a health insurance policy and if you face understanding certain terms related to the policy, check out the above terms as these are the most widely used jargons in the insurance documents.
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.
