‘Health is wealth’ is a phrase that every individual is taught to respect and abide by from a young age. Nothing is more important than an individual’s well-being and good health.
Jargons to Be Aware of When You Buy A Health Insurance Policy
But, while maintaining good health by a good diet or regular exercise is important, we must always be prepared for any unforeseen event, especially in light of the recent pandemic. Financial backup becomes a priority to help cope with such unexpected times. Health insurance companies offer extensive and comprehensive medical plans that provide the best care. Following are some of the important jargons to be aware of to make a sound decision before you purchase a health insurance policy for yourself and your family:
- Cashless Claim: The health insurance claims you avail for as part of your medical treatment in the hospital, the costs borne by the insurer directly at the time of your discharge from hospital are called cashless claims.
- Critical Illness: Life-threatening medical conditions such as cancer, kidney failure, cardiovascular diseases, etc., fall under critical illnesses. These illnesses have special medical plans made available by the health insurance companies and can be purchased as a stand-alone or add on.
- Deductible: A small portion of the claim amount borne by the policyholder is called a deductible. It needs to be paid upfront in case of a cashless claim, whereas in the case of a reimbursement claim, it will be subtracted from the final claim amount.
- Premium: The amount that you need to pay to your health insurance company against the desired policy purchased is called the premium. The premium amount varies basis numerous factors such as age, gender, occupation, etc., of the policyholder.
- Network Hospital: Every health insurance company ties up with a certain number of hospitals known as the network hospitals. Policyholders can get their treatments done in these hospitals in a cashless claim. The insurance company settles the hospital bills directly up to the coverage limit.
- Sum Insured: This refers to the amount of money to be paid by your insurance company in case of any unfortunate incident. As per your policy, this is the maximum amount that your insurer is liable to pay in case you raise a claim. You, i.e., the policyholder, will bear any expense exceeding this amount.
- Waiting Period: Ranging from a few months to a few years, this is referred to as the time the policyholder cannot file for a claim after buying the insurance policy.
- Maternity Benefit: All expenses incurred related to maternity, such as prenatal, post-natal, etc., are termed maternity benefits. A waiting period ranging from 9-48 months is available for maternity benefits as per numerous health insurance policies. That’s why it’s advised to purchase such a plan as soon as possible for newly married people.
- Inclusions: The coverage under your policy, i.e., all situations covered in your health insurance policy, are termed as inclusions. You can file a claim against any of those inclusions.
- Exclusions: All situations not covered under your policy are called exclusions. They are mentioned in the policy documents, and any claims against these will most likely be rejected.
The premium amount varies according to a variety of factors such as age, gender, occupation, and so on. Some of the key terms are cashless claims, critical illnesses, and deductible. Chola MS understands that one’s health is the most important aspect of one’s life and hence offers its extensive health insurance policy to provide the best care possible.