New to Health Insurance? Here Are Some Terms You Should Know
Now that you have decided to buy a health insurance policy, know that during your search, you would encounter a vast array of health insurance terms. Health insurance companies use a massive range of terms in all their health insurance policies. Having an understanding of all these terms would be highly significant so as to avoid confusion at the time of purchase or claim. Remember, not comprehending the health insurance terms can lead you towards disappointment for the simple fact that getting confused between the terms or not going through the terms just to buy a policy in a haste will end up in your medical needs not being met, even after paying a significant amount of money.
Remember, reading all about the health insurance terms would benefit you. So, do not think of it as a waste of time and go through every word carefully. You never know which term would be of your use. Here are a few health insurance terms you should comprehend so as to enable an easy and meaningful purchase.
Common Health Insurance Terms
Below mentioned are a few key health insurance terms you must know:
1. Co-payment – Co-payment is the part of the claim amount that a policyholder has to bear while the rest being covered by the health insurance company. In other words, in plans with co-payment, the treatment expenses are divided between the policyholder and the health insurance company. Co-payment is generally listed in the form of a percentage.
2. Cumulative Bonus – Cumulative Bonus is the bonus amount that is accumulated in a health insurance plan over successive claim-free policy terms in a row.
3. Daily Hospital Cash – Daily Hospital Cash is a specific cover under which the insured individual gets a fixed monetary payout for each day of hospitalization. The exact amount of daily hospital cash is decided at the time of policy purchase. Daily hospital cash can be availed as a standalone cover or as a rider for standard health insurance policies.
4. Free Look Period – Free look period in a health insurance policy is basically the specific time period during which a policyholder has the freedom to look for policies from other health insurance companies. Generally, the free look period is of 10-15 days from the date of the health insurance plan purchase during which the policyholder can cancel their policy.
5. Grace Period – The grace period in a health insurance policy is the pre-decided time after the date when the policy premium for renewal is due. During the grace period, a policyholder is free to pay their policy premium without losing coverage or experiencing policy lapse.
6. No Claim Bonus – No-Claim Bonus is the benefit provided by health insurance companies to policyholders for every non-claim year. Owing to this benefit, policyholders can avail a higher sum assured at the same premium cost in the consecutive succeeding year.&
7. Refill Sum Insured – Filing a claim can end up in the exhaustion of the sum insured amount. Refill sum insured benefit or reload of the sum insured allows the reinstatement of the sum insured amount. With the refill or reload facility, your exhausted sum insured is reinstated. However, certain conditions apply. Keep in mind that for the refill sum insured feature to come into effect, the sum insured must be exhausted in a complete manner.
8. TPA – TPA or third-party administrator is a special department at every hospital and healthcare facility. It is the body that processes insurance claims admissible under the mediclaim policy. You can easily submit your health insurance details to file a claim at the TPA. Be it cashless or reimbursement claim, submitting insurance documents at the TPA would be necessary.
Make it a point to look for all the above mentioned common but key terms of health insurance whenever looking for a health insurance policy. Rest assured, knowledge of these terms will help you differentiate between a suitable and unsuitable policy to make your purchase worthwhile.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.