Key Terms to know While Buying Health Insurance
Medical emergencies strike uncalled and demand professional medical care and hospitalization. Apart from affecting your life, they also affect your monthly budget, forcing you to spend extra. To avoid the brunt of such unexpected spending, a health insurance plan is recommended.
What is a health insurance plan? It is a simple contract held between the insurer and the insured person. Using this policy, medical expenses incurred by the insured person are reimbursed by the insurer against the payment of small amount of premium.
There are several policies available in the market. Thus availing medical insurance in India is somewhat confusing and exhaustive. To simplify selection, let us acquaint you with some common health insurance terms listed below.
1> Sum Insured
This is amount any insurance company will pay to the insured in case he incurs medical expenses due to hospitalization. This is also the amount an insured person receives if he has signed up for family floater option and any of his family member is hospitalized.
2> Insurance Premium
This is the amount you pay to the insurance company to avail a health insurance plan. It is influenced by various factors.
3> Cumulative Bonus (CB)
This is a discounting mechanism provided by the insurance company to insurance buyers in case they do not file a claim in the previous year. This discount can be accrued for years, thus significantly reducing the premium amount to be paid while availing policy.
4> Health Check-up Costs
Certain policies ask for medical tests. The cost incurred by these tests is covered under Health Check-up costs.
5> Minimum Period of Hospitalization
This is the minimum time for which an insured needs to be hospitalized before filing a claim.
6> Cashless facility
Under cashless facility, you will get admission into the network hospital of the insured without paying any cash.
7> Pre- and Post-hospitalization expenses
These are expenses for tests, medicines, etc. incurred by the insured person, before and after a medical procedure.
These are health conditions that are not eligible for any claim.