Health Insurance: If you do not understand the meaning of these technical terms of the contract, then there may be trouble in times of need


Health insurance has become a big necessity in today’s era. Especially after the Corona crisis, its importance has increased even more. However, it is important to know the terms and conditions of insurance before taking it. But it is also true that understanding the specifics of an insurance contract is a bit difficult for common people.

Often people do not try to know the meaning of the terms, conditions and technical terms associated with the insurance contract. But it is not right to do so, because it may cause you trouble at the time of need. Today we are going to tell you about some such technical terms.

co-payment
In co-payment, the policyholder pays a portion of the insurance claim. Co-payment refers to the option to share a pre-determined percentage of the claim amount between the insured and the insurance company. In this, the insured person agrees to bear some percentage of the total claim amount from his own pocket. Choosing this option helps in reducing the premium.

deductible or deductible
Deductible or deductible is a specific amount under which the insured has to bear the expenses before the health insurance comes into force. This arrangement also helps in reducing the premium as this arrangement relieves the insurer from a part of their liability. Higher the deductible, lower will be the premium.

day care treatment
It refers to the treatment or operation performed in a hospital or day care center under general or local anesthesia for less than 24 hours. Day care treatment does not include OPD. Some common day care treatments include cataract surgery, coronary angiography, chemotherapy, dialysis, etc.

Pre hospitalization and post hospitalization
Keep in mind that the period of 30 to 60 days before hospitalization is considered as pre-hospitalization whereas the period of 90 to 180 days after hospitalization is considered as post-hospitalization. Diagnostic tests, consultations, etc. are included in the pre-hospitalization expenses. The expenses incurred after hospitalization include follow-up medicines, tests, physiotherapy, dialysis, chemo treatment etc.

free look period
The period of 15 days from the date of receipt of the policy document is called the free look period. It is given to every new health insurance or personal accident policy holder. During the free look period, you can re-analyze whether a particular plan is right for you or not. If the policy does not suit you during the pre look period, it can be canceled and the premium will be refunded. However, if covered, the insurer will charge you for administrative expenses.

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