To those who are new to health insurance, terms like “deductible,” “copay,” and “premium” can be overwhelming. Having at least a basic understanding of what these terms mean can help in selecting a policy and actually using the policy for health care, however. This article will give a quick explanation to help make the new insurance process smoother.
A benefit is any money provided by the insurance company to cover costs of services. As such, a beneficiary is anyone covered under the plan. A benefit period is an amount of time during which services are being continually offered that should be covered – at least in part – by the insurance company.
A standard health insurance covers for in-patient treatment that is overnight stay in a hospital. This is known as Hospitalisation which could be due to an illness or accident.
A copayment is a part of the payment that must be made by the policy holder out of his pocket based on the policy terms and conditions for certain services like room charges, specific disease treatment etc.
Understand copayment much better with the help of the below video
The deductible is the amount of money that must be paid by the insurance policy holder before the insurance company will start covering medical costs.
Network hospital is a terminology that is generally used to let policy holders know which Hospitals or specialists to go to. When a hospital is indicated to be in the insurance company’s network then it will be eligible for cashless treatment.
A premium is an amount paid every year to keep your health insurance policy active. Failure to pay the premium amount every year will result in a lapsed policy. Some insurance companies may allow a grace period before the coverage lapses but this may involve certain terms and conditions which might put the claims on hold during this period.
Many of us take steps to take care of our health; however when it comes health insurance we get hassled with the new terms. Here we have tried to simplify some of these important terms. For more information about the policy benefits and terms please visit our site www.turtlemint.com/health-insurance or if you are based out of India you can contact your local health insurance provider and check the various health insurance policies available in the country of your residence.
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