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It has become vital to have a health insurance policy nowadays, especially after the covid19 pandemic; it is of paramount importance. It provides comprehensive financial security against rising medical expenditures and helps protect your savings for achieving your other goals of life. But, before purchasing an insurance plan for your health, it is a must to know about its coverage. While certain terms used in insurance policy documents could be baffling and ambiguous, it is always best to understand the meaning and purpose before you move to purchase it from the insurer. An insurance deductible is one such word that is commonly misunderstood by many, which we have explained in detail here.
The portion of the medical/hospitalization expenses that the insurer has to pay before he/she can make an insurance claim is known as deductible in Health Insurance. Insurance companies will either pay the amount of your claim directly to you or to the hospital after the deductible amount has been paid.
In simple words, it can be said that the insurance company shall pay the claim if it exceeds the amount of the deductible, and any claim which is less than the insurance deductible wouldn’t be paid.
Let us understand what is deductible in health insurance with an example: Let’s say you are advised to undergo surgery, which will cost around Rs.1,20,000. You may get hospitalized and eventually file a claim to pay for the cost of the procedure. But, when the insurance policy comes with the deductible of Rs. 20,000, you’ll have to pay Rs. 20,000 from your pocket, and your insurance provider shall pay the balance of Rs.1,00,000.
In case you are required to get admitted to the hospital for a minor surgery that costs Rs. 15,000 only. As the cost is lower than the deductible of Rs. 20,000, the insurer wouldn’t cover the expenses, and you’ll have to pay the entire amount of surgery all by yourself.
Also Read: Advantages of Family Health Insurance
In the medical insurance sector, deductibles can be categorized into five major types: Voluntary, Compulsory, Comprehensive, Non-comprehensive & Cumulative. What are they, and how are they different from each other?
It is useful to know the benefits of health insurance deductibles to help decide if they want to use this option or not while raising a claim request with their health insurer or TPA.
While the deductibles can help lower the cost of your health insurance, they do have some disadvantages, such as:
There are many features that come attached to a health insurance policy which you have to choose before buying them. To help you shortlist the right policy with useful features like health insurance deductibles, PayBima offers you the platform to select and buy the best policy suiting your requirements and life goals.
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