Almost everyone takes health insurance. It is also necessary to take health insurance to deal with any emergency. If you do not have health insurance and you fall ill, due to which you have to be admitted to the hospital, then a lot of your money can be wasted.
Almost everyone takes health insurance. It is also necessary to take health insurance to deal with any emergency. If you do not have health insurance and you fall ill, due to which you have to be admitted to the hospital, then a lot of your money can be wasted.
Whereas if you have health insurance, then all these expenses are borne by your insurance company and there is no burden on you. Whenever you go to get insurance, many times you must have heard about deductible. Let us know what is deductible and where is it used.
Know what is deductible?
As you can understand from its name itself, something is being subtracted from it. Actually, deductible is the amount which you have to pay yourself in case of an insurance claim and the remaining part is paid by the insurance company. Let us understand this with an example. Suppose you have taken a policy of Rs 5 lakh, in which the deductible amount has been fixed at Rs 2 lakh.
If you make an insurance claim of Rs 5 lakh, then first you will have to pay Rs 2 lakh yourself. You can pay this money from your savings or from your corporate policy. After this, the insurance company will pay the remaining Rs 3 lakh. In this way, Rs 2 lakh will remain deductible and the remaining Rs 3 lakh will be paid by the insurance company.
There are two types of deductibles
There are two types of deductibles in health insurance. The first is mandatory deductible and the second is voluntary deductible.
Mandatory Deductible
In this, it is decided by the insurance company what will be the deductible amount. You will have to pay that amount in case of an insurance claim and the remaining amount will be paid by the insurance company.
Voluntary deductible
In this, the insurance company does not decide what the deductible amount will be. The customer is given the option to choose the deductible amount. The customer decides on his own how much amount of deductible to keep in his policy. However, it is important to keep in mind that as the deductible amount decreases, the premium increases.
What are the benefits of deductible?
The biggest advantage of having a deductible in the policy is that you can get insurance with more sum insured i.e. coverage at a lower premium. If seen, keeping the deductible amount in the policy helps you in getting better coverage. The higher your deductible, the lower your premium will be. This is because in case of higher deductible, it is possible that your claim may be limited to the deductible amount and there will be no need to claim it from the insurance company.
Who should avail the facility of deductible?
The facility of deductible should be availed by those who have a small policy from their company. For example, suppose your corporate policy is only Rs 3 lakh, but you want to increase it to Rs 10 lakh or 15 lakh.
In such a situation, you can take a policy of Rs 10 lakh, in which the deductible amount can be fixed at Rs 3 lakh. In this way, you will get more coverage at lower premium and you will be able to take advantage of the deductible. If you don’t have another policy from which you can pay the deductible, you should stay away from this facility.
