How Does a Health Insurance Policy Work for You?

What is a health insurance policy?

A health insurance policy is defined as a legal agreement between the insurance provider and the policy holder. The policy holder is required to make a monthly payment towards the insurer & such a payment is termed as premium. The insurances company bears the responsibility of the expenses arising out any medical issues caused to the insured or his/her family.

The insurance providers calculate the cost of various medical treatments for which they are held liable for, and setan annual premium that is to be paid by the insured.

Components of a health insurance policy:

  • Insurance premium: It is the fee that you pay to the insurance provider on yearly basis in order to get coverage against any medical condition or treatment as described in the policy.
  • Deductibles: Health insurance policy usually requires that the policy holder to bear some of the initial medical expenses up to a certain limit before the health insurance is liable for payment.
  • Co-payments: In addition to the deductibles, the insured has to pay a certain amount of treatment expenses to reduce/avoid unnecessary or small claims.
  • Co-insurance: It is the amount of money the insured is responsible to pay for the services after the deductible has been paid.
  • Exclusions: Health insurance policies generally do not cover all the expenses. Policy holders remain 100% liable for any excluded expenses and these expenses do not apply to the deductible amount defined in the policy.
  • Coverage limits: Health insurance is not unlimited. Insurance providers usually limits the liability to which they are supposed to pay. It is basically the maximum amount the insurances company pays subject to certain terms and conditions of the policy.

How it works?

Buy an insurance: There are many insurance companies that sells health insurance. While choosing one, look at the company products, their reputation, and especially their claim settlement ratio. You can opt for insurance provider such as Bharti AXA.

Claim: If you are required to undergo hospitalization, you can file a claim with your insurance company. There are two ways:

  • If you get yourself admitted into a hospital which has a tie-up with your insurance provider (network hospital), you have the option to choose cashless treatment. The insurances company settles the bill directly with the hospital.
  • If you get yourself admitted at a non-network hospital, you need to pay the bill from your own pockets. You can then file a reimbursement claim wherein the insurer verifies the documents you submit and reimburses you the medical expenses.

Renewal: A health plan is for one financial year. You need to renew it each year, if you don’t, you lose the benefits associated with the plan. Always remember to renew insurance whenever the maturity period has ended.

A best health insurance policy one of the best protections you can have for your life. Choose a health insurer with care from amongst reputed companies like Bharti AXA and remember to renew it on time.

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