Health insurance in India is a complex concept to get and it is important to understand the terms before you decide to invest in one. A deductible is an important part of the policy and before you choose an insurance provider, you need to be well acquainted with a deductible means. Basically, a deductible is a limit which is set by the company. It depicts a part of the claim that the insured has to pay on his own and the balance will be borne by the company. This means the deductible amount will have to be borne by you in case of a health insurance policy.
For example, if the deductible amount in your policy is Rs. 1 Lakh and the sum assured is Rs. 5 Lakh, in case of a claim of Rs. 50,000, you will have to pay the entire amount out of your pocket. However, if the claim amount is Rs. 2 Lakh, then you will have to pay Rs. 1 Lakh out of your pocket and the insurance company will pay the remaining Rs. 1 Lakh (which is the amount exceeding your deductible). The company will pay an amount, which is over and above the amount of deductible in the policy.
Why is deductible an integral aspect of health insurance?
A deductible is a crucial aspect of a health insurance policy. The deductible is a measure of safety, which is instigated by an insurance company in order to safeguard itself against frequent claims. When there is a deductible in place, you will be making a well-informed decision. You will ensure that you do not make any trivial and avoid unnecessary hospitalization because in case of a small claim you might end up paying it out of your own pocket. This will reduce the incidence of claims on the insurer and will bring down the cost of administration.
Types of deductibles
There are mainly two types of deductibles in a health insurance plan.
This health insurance deductible will be inherent in the plan and you have no choice in this case. You have to bear the deductible limits mentioned as they come as a part of the plan.
In this case, you get an option to choose the limit you want to set as the deductible. The limit can be over and above the compulsory limit that is stated in the plan. It will totally depend on you and you can change it at the time of the renewal of the policy.
You need to be aware of the deductibles in your policy and make a wise decision when buying health policy. Be sure of the limits in case of the voluntary deductible so that you know what you are getting what are you signing up for. Finserv MARKETS is your personal health insurance guide to get clarity on more such health insurance concepts and terminologies. Head to our website to get a free health policy quote today!
Also know about health insurance tax benefits before you buy the policy
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