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Key Terms Used in Health Insurance Policy

By Finserv MARKETS - Jan 23,2019
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Key Terms Used In Health Insurance Policy

To understand your health insurance policy, it’s important to know and understand the different terminologies used in the terms and conditions document of your health plan. In this article, we have tried to explain some of the most important health insurance terms to help you understand all about health insurance enabling you to make an informed decision.

Premium

A health insurance premium is an amount you are required to pay annually towards your policy. This usually is dependent on the plan that you opt for and can depend upon a variety of factors.

Deductible

A deductible is an amount you spend on health insurance services covered before your health plan starts to cover for your health expenses. Usually, plans with higher monthly premium have lower deductibles.

Pre-existing Conditions

This refers to any pre existing disease, injury or illness you may be suffering from, prior to getting your insurance policy.

Beneficiary

A beneficiary refers to a person who will benefit from the insurance policy in case the policyholder dies before the expiration of the plan.

Floater Policy

A floater policy is a policy where all the members of a family would be covered under one single insurance policy. While purchasing a Family floater policy, only a single sum is insured which can be used for a definite number of times by any family member, until the maximum insured value has reached its limit.

Claim

Filing a claim is the process where the insured individual gets in touch with the insurer for reimbursement of all expenses incurred during medical treatment.

Cashless Claim Facility

A cashless claim is a health insurance benefit wherein, the insurance company would pay the amount directly to the hospital in case of medical treatment or emergency. The important thing to remember with a cashless claim is that you can get treated only in the specified range of network hospitals that are authorized by your insurance company. Finserv MARKETS offers health insurance with cashless facility across 6000+ network hospitals.

Cumulative Bonus

This means in case of any claim-free renewals, there will be an additional sum insured which is called as a Cumulative Bonus (CB). This amount gets accumulated into your renewed policy. A Cumulative Bonus could range anywhere between 5 to 10%.

Domiciliary Hospitalization

This term is used when the treatment of the insured person is done at home instead of a hospital. Most health insurance policies will cover you under domiciliary hospitalization. However, this can only be processed if recommended by your doctor.

Exclusions

Exclusions refer to certain conditions, treatment, diseases and other medical illness that are not covered by your health insurance policy. There are two exclusions; one is permanent exclusions and the other is exclusions for a pre-determined waiting period.

Buying Health insurance online is an easy, convenient and hassle-free way to choose the perfect health policy. Finserv MARKETS health policy that are tailor-made for you and can be bought online without any hassles. If there are any terms included in the policy that confuse you, or you aren’t able to understand, then make sure to contact your health insurance company to understand the same before making a final decision. Our policy partner, Bajaj Allianz General Insurance has a dedicated customer service centre that promptly answers all your queries.

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522