Good health is the most precious item you have, and anything valuable deserves protection. Healthcare plans have become an essential requirement for people who want to ensure a financially secure future for themselves and their families. Over 500 million people in different countries will be covered under various health insurance policies in 2021 alone, ensuring that medical expenses originating from an unfortunate occurrence are covered.
If you are not one of the 500 million individuals and are new to the insurance world, there are several terms you should be aware of before purchasing an insurance policy. These will enable you to select the best approach for your needs and make an informed decision.
Top 10 Terms You Should Know Before you buy health insurance:
Here are the essentials that one must know before setting mind to buy health insurance coverage. Because you should be familiar with the following terms as it will help grow better:
- Sum Assured: A sum assured is a fixed amount paid to the policyholder by the insurance provider if the covered event occurs. For example, if a policyholder dies, the insurance company will pay the sum assured if the policy requirements are met.
- Eligibility refers to the minimum conditions that the policyholder must meet to purchase insurance policies. The insurance provider can ensure eligibility by requiring a minimum entrance age, medical condition, legality, and financial stability.
- Premium Amount: In exchange for providing health insurance coverage, insurance companies charge the policyholder a certain amount known as the premium amount. The sum promised amount, and the features are used to calculate the amount.
- No Claim Bonus: A no-claim bonus is earned if you do not make any claims throughout the insurance year. If there has been no claim, most buy health insurance plans that provide a free increase in the sum insured upon renewal. The sum insured is increased by a set percentage after each consecutive claim-free year. That is why, in many plans, the no-claim incentive is also referred to as a cumulative bonus. Some programs may also offer a discount on the renewal cost as a no-claim bonus.
- Co-payment: A co-payment is a condition in which the policyholder bears a part of the total expenditure, and the insurance company covers the remainder. The higher the Co-payment %, the more expenses the policyholder pays out of pocket.
- Waiting Period: A waiting period is a defined period wherein the insurance policy doesn’t accept claims emerging from a pre-existing condition or illness. After this term has expired, the policyholder may make any claims mentioned in the policy.
- Network hospitals: Like these, the insurance company has enlisted in the health insurance policy to receive cashless care. Outside of the network hospital, the policyholder must pay before receiving reimbursement from the insurance company.
- Cashless Treatment: The policyholder can receive cashless treatment in in-network hospitals, where the insurance provider directly covers the claimed medical expenditures with the hospital. The policyholder does not pay the hospital in cash in the cashless facility.
- 30-day free-look period: If you are dissatisfied or displeased with your health insurance policy, you have the option to cancel it after purchasing it. You have a time of up to 30 days following the policy’s issue to cancel it. It is referred to as the free-look time. Assume you cancel the plan during the free-look period. In that instance, you will receive a refund of your payment after the business deducts the policy issuing expenses and the cost of enabling the coverage until the policy is canceled.
- Add-ons: Add-ons are additional when you buy health insurance. Itcovers that a policyholder can add to an existing insurance policy to make it more suited. The policyholder can add riders such as an accidental hospital cash benefit, critical sickness rider, and so on by paying a small additional premium.
These are some of the critical terms in health insurance. Check these words when purchasing a policy, understand the coverage, and then invest in a health insurance plan. Aged people, particularly senior adults, are at a more considerable health risk and, as a result, require more health insurance than younger, healthier people. The hitch is that health insurance firms sometimes demand exorbitant fees to cover the elderly, and some may even refuse to issue new policies at all.
As a result, all of us must obtain health insurance for our parents as soon as possible to continue to receive the protection of health insurance as they age. With their in-depth knowledge of financial products and services, many are already assisting such customers in selecting the best-suited life insurance plans based on their needs and the value of insurance in any person’s life. To learn more, visit their website and contact customer service as soon as possible.mj