A Comprehensive Guide To Health Insurance Terminologies And Benefits

livemint.com:

health insurance is to allow the policyholders to access adequate and quality healthcare services as well as provide financial protection. Let’s now concentrate on some of the common health insurance terminologies. Understanding these common terminologies will help policyholders to make informed decisions about healthcare coverage.

Premium is the amount paid regularly to the insurance company to maintain health insurance coverage. Deductibles in health insurance are the amount that an individual must pay out of his own pocket to cover various medical services before the insurance company starts its contribution to the cost of the healthcare service. A copayment in health insurance is a fixed amount that is paid by an insured person for several covered services like prescription drugs or doctor visits.

All the remaining costs are covered by the insurance company. Coinsurance is the percentage of the cost of a covered healthcare service that must be paid by an individual after meeting the deductible. This is the maximum amount that must be paid by an individual for covered services during the entire policy period.

Once the limit is exhausted, 100% of the remaining costs are covered by the insurance company. A waiting period in health insurance refers to the duration during which the policyholder cannot claim certain insurance benefits or coverage from the insurance company. During the waiting period for health insurance, policyholders must pay all the medical expenses out of their own pocket.