Most of us tend to take it easy, when it comes to buying a health
insurance policy. The common mistake that everyone makes is that either they
don’t read the policy documents carefully or they don’t bother understanding
technical terms. This, until a disaster strikes and brings with a nasty shock.
To avoid this unpalatable situation, it’s best to be prepared. This blog
examines some common terms in health insurance policy.
1.
Co-payment clause: If you sign up for a co-payment clause then as the
term suggests, you will be sharing a certain percentage of costs, with your
health insurance provider. This will definitely scale down the premium if your
health insurance policy. What you must know is that not every health policy has
this feature, but in case of a senior citizen policy, it may be definitely
surface. But the good news is that it gives the policy holder peace of mind,
especially if he’s older as it bears the major portion of expenses, going easy on
the savings. The percentage of co-payment may differ from one insurer to
another.
2.
Deductible: This is yet another term to watch out for, while
buying a health plan. What it means is that a certain amount has to be
paid out of the pocket before your insurer steps in to take care of the
expenses. This may also differ from one insurance company to another.
3.
Maternity cover: This is a tricky clause as many health plans may not
feature it while there may be others where they give sub clauses. Maternity
coverage may exist in some plans but the waiting period could be as long as 48
months. If you opt for a plan with a lesser waiting period then there are
chances that you will be forking out a higher premium for that plan. Also, many
health insurance providers keep maternity and childbirth related expenses in
their exclusions sections. It is important to know that though some health
plans may have a maternity cover, your newborn may not be covered in that
policy, therefore put you at the risk of incurring expenses if your child needs
some medical attention post delivery.
4.
Portability:
If a policyholder
is not happy with his health policy, or does not pay for renewing his policy he
has the option of buying a new health policy. But, in this case he will not get
certain benefits especially the time-bound exclusions. So you have to read your
policy documents very carefully.
5.
Reasonable Charges: Insurers prefer paying claims which are reasonably
charged by the hospital and not an exorbitant rate for any of the expense-head.
The insurer makes this clear to the policyholder through its policy document
that only reasonable charges would be reimbursed.
6. Free Look Period: This is
applicable for those policy holders who may not be satisfied with terms and
conditions of their policy and may want a change. Usually insurers provide a
free look period where you can opt out of your policy without any extra
charges. Generally, it’s a 15 day period.
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