8 health insurance jargons you need to know about.
Posted by john on April 11th, 2019
Buying health insurance is probably one of the best investments you could ever make. Not only does it keep you safe from life’s uncertain moments, but it also helps you save money through attractive tax benefits. However, it can also be a little confusing. Not because of complex workings or procedures, but because there are so many industry terms involved. Keeping this in mind & to help you get a clearer understanding, this article will highlight & explain some of the more common jargons of a health insurance plan.
1. Free look period.
This is a very common term used in the health insurance industry. It’s also a very helpful concept for anyone looking to buy a plan in the future. With any medical insurance policy, you can cancel the plan and get your money back. Maybe you aren’t satisfied with the plan or you found something in the policy underwriting that you don’t agree with; it doesn’t matter, you can send the policy documents back and get a refund. This is usually permitted within the first 15 days of receiving the policy documents, a period known as a free look period.
We all know that the main purpose of health insurance is to cover the cost of treatment when ill. However, if you want, you can opt to pay a percentage of the medical expenses to reduce the premium amount of your policy. The amount you pay in this regard is called co-payment.
This is like co-payment, only it is not a percentage but a fixed amount that needs to be covered by you before the insurance company covers your medical expenses. There are different types of deductible.
The first is ‘per year’ deductible, which once covered, will result in all other claims in a year being covered by the insurance company. Then there is the ‘per life’ deductible, here you pay a deductible amount once in your life, after doing so, your insurance company will cover all further claims. Lastly, there is ‘per event’ deductible wherein you need to cover a fixed amount on every claim you make. There is also voluntary deductible which can be added to the compulsory deductible to lower your health insurance premium.
4. Network hospitals.
These are simply hospitals with which your health insurance provider has a tie-up with. If you get some treatment done from one of these network hospitals, you will not need to pay anything as the insurance company will foot the costs directly, providing what’s known as ‘cashless’ treatment. In non-network hospitals, you will first have to cover the costs out of your own pocket and then provide the bills to claim a reimbursement of your expenses.
5. Grace period.
If you fail to renew your health insurance policy on time, you are usually allowed 15 days to renew the policy without forfeiting benefits like your NCB, waiting periods, and pre-existing illness coverage. This period of 15 days before which your policy completely lapses is called the grace period.
These were some of the most commonly used jargons in health insurance. If you are confused regarding some other terms besides these, do speak to an insurance provider. Make sure you have a complete understanding before buying a plan. Good luck and all the best, take care!
About the Authorjohn
Joined: January 28th, 2019
Articles Posted: 5
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