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Health Insurance: Know what is co-payment, its effect is visible from premium to claim

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Health Insurance: Know what is co-payment, its effect is visible from premium to claim

As the rule of co-payment affects the claim amount of the policy holder, the premium of a policy with such option is less as compared to other policies.

Awareness about health insurance is increasing continuously in the country, and people are now buying more and more policies. However, due to lack of knowledge of many things related to the policy, when needed, people come to know that they have taken the policy wrong or they have not got the full benefit of their money. Actually, there are many rules and many things in the policy issued by the insurance companies which are very important to understand. Generally, people often decide to buy a policy after looking at the premium and coverage. So they take the loss. We will tell you the meanings of some such special terms related to insurance, which will help you in choosing the right policy. Today we are going to tell you about co-payment which has an impact on your

What is Co-payment
Co-payment means that part of the claim that the policy buyer is ready to pay himself. It can range from 10 percent to 30 percent and is already decided in the policy. On the other hand, many policies do not have the option of co-payment i.e. you can get 100% of your claim. That is, even before buying a policy, you can know whether there is co-payment in that policy and if it is, then how much is it. For calculation purposes only, assume that the co-payment of your policy is fixed at 20% and you have claimed 1 lakh, then the insurance company will pay a maximum of 80 thousand only. The co-payment rule is applicable as many times as the policyholder makes a claim. On the other hand, the co-payment does not affect the sum insured. That’s where it differs from deductibles. That is, expenses that are not covered in the policy.

Why is co-payment information important?
Often people do not take co-payment information while taking a policy and when they make a claim, they are asked to pay some money on their behalf. In fact, insurance companies have kept the option of co-payment only to prevent people from being admitted to hospitals without need or from availing the facilities of expensive hospitals. In return, the premium in such a policy is less than the hundred percent paying policy. Keep in mind that not every policy has a co-payment. So before taking the policy, definitely ask about it. It should not happen that you should happily take a policy with a low premium and later find out that only 70 to 80 percent of every claim in the policy will be paid.

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