The basics of health insurance policy terms
Health insurance is one of the poles of private finance, earning the attention of every household. That’s why you must be armed with the proper information so that you can understand the decision-making process and arrive at the right choice for you and your family.
- Pre-existing diseases
They are illness diagnosed before commencement date of the policy. Health insurers can decline pre-existing health state like asthma, diabetes, or cancer. On the other hand, the time defined should also be known which must pass before all of your health care coverage can start, and the claim is not admitted.
- Network hospital, Cashless facility, and minimum stay
Health insurance providers make a connection with certain hospitals by making them a part of their network. In cashless health insurance, an insurer does not need to pay anything while they are hospitalized because the insurance provider will deal directly with the hospital along with the 24 hours stay charges.
- Co-pay, deductible, and Grace period
A co-pay is an out-of-pocket amount paid by an insurer for covered services. Deductible refers to the amount paid for covered health care facilities before your insurance plan starts to settle. The grace period is defined as before your insurance company can end your coverage; you have a short period to pay for typically 30 days.
- Policy portability and Sum assured
Portability means transferring your health insurance to another service provider. Finally, Sum assured is a fixed amount that the insurance company pays to the policyholder when the insured event takes place.
- Sub-limits, rider benefits, and top-up cover
A sub-limit is an additional limit in an insurance policy’s coverage of inevitable losses. The rider benefits can be included in the primary health insurance plan. Finally, top-up covers approximately all the hospitalization expenses.
By having an understanding of these simple health insurance terms, your knowledge will maximize, and your life will become simplified.
