Health insurance is a boon for tough and uncertain times. When medical emergencies hit hard, we look towards our health insurance policies. But oftentimes, we fail to leverage all its benefits. The underlying reasons could be improper understanding of the claim process, hidden terms and conditions, and deductible. Among these, failure of understanding health insurance deductible is one of the most concerning.
What is a health insurance deductible?
If you remember or understand the claim filing process of health insurance policies, you must know that there is a certain fixed amount you pay from your pocket and the rest is claimed by insurance providers. The amount you pay on your own is called health insurance deductible. And it is a part of every claim you make under that health insurance in a year.
It is recommended that the higher the amount of premium for health insurance, the lesser is the health insurance deductible. However, if you buy health insurance with a low premium amount, there can be an expensive health insurance deductible amount.
What factors decide the health insurance deductible amount?
Understanding what all factors can affect your deductible amount, one can buy health insurance smartly. Here are some of the factors affecting health insurance deductible amount-
- Pre-existing diseases
- Medical history
- Any anomalous habits like smoking, consuming tobacco, or regular alcohol consumption.
- Health conditions
Apart from these, there is a set of guidelines given by IRDA that defines how insurers can decide deductions on health insurance amounts. Going through its guidelines and understanding what all can be included in deductibles can help you buy right.
Why is understanding health insurance deductible crucial?
As at first, only claim settlement ratio, inclusions, and premium amount sound important for buying the right health insurance. Health insurance deductibles often go unseen and this costs a huge amount later on. Therefore, it is always recommended to go through and comprehend the significance of deductibles beforehand. Here is a list of reasons for you to understand why health insurance deductible is important-
- For insurance providers, it ensures that insurance holders don’t make any anomalous or petty claims and only the needy get the benefit of health insurance.
- For insurance bearers, going through deductibles beforehand places them in a secure position. This also plays a part while choosing the right hospital to get medical help from. For instance, if you go to an expensive hospital, it should be understood beforehand what amount your insurance would need you to pay on your own!
- Insurance with a higher deductible amount can dig a hole in your pocket. Therefore, to get the most of your insurance, understand the deductibles.
Types of a health insurance deductible
The Indian insurance industry considers three types of health insurance deductibles. These are-
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Voluntary Deductible
It can be leveraged by insurance bearers to reduce the premium costs.
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Compulsory Deductible
These are predefined by insurance providers and can vary according to plans and amenities are chosen. It is fixed and shall be paid by the insurance bearer upon every claim filled.
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Comprehensive deductible
It is a single deductible for all persons covered under the health insurance policy.
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Non-comprehensive deductible
It is only for certain medical expenses and not for all.
Tips to Buy Insurance with the Right Deductible
Sometimes, shortlisting health insurance with deductible ideals for you can be cumbersome. Here are some tips to buy right-
- If a policy has a low premium amount, it surely will have a higher health insurance deductible. Look for this clause carefully.
- If you are planning to buy an individual health insurance policy with no dependents, opting for insurance with a high deductible at low premiums would be beneficial for you.
- If you need high medical coverage and are suffering from chronic heart or kidney diseases, getting a policy with a low deductible would be best for you.
- Always calculate and understand deductible clauses beforehand.
Ready to Buy Health Insurance?
Are you now ready to buy your ideal insurance with the right deductible amount? Consider Care Health insurance. It has a high claim settlement ratio and 24*7 customer support to assist.
