A deductible is the portion of a claim that the insured has to bear before the loss is reimbursed. You will have to bear the cost up to a certain pre-determined limit and the insurance company will pay the claim only after crossing the deductible limit on the entire treatment cost.
Buying health insurance is one of the best ways to protect yourself from sudden medical emergencies. Before buying health insurance, it is important to go through the terms and conditions of the policy thoroughly to avoid any confusion or disappointment later on.
One such word is ‘deductible’. a little more of it There is a need to understand. A deductible is the portion of a claim that the insured has to bear before the loss is reimbursed. You will have to bear the cost up to a certain pre-determined limit and the insurance company will pay the claim only after crossing the deductible limit on the entire treatment cost.
Deductible in top-up plan
which works in a different way. In a top-up plan, the deductible is the extent to which the base policy or the life assured bears the claim cost. Top-up plans help you enhance your basic insurance plan at a nominal premium. There are two types of top-up policies. Regular Top-up and Super Top-up. Regular top-up has a single-event deductible. The deductible is the extent to which the base policy or the insured bears the claim cost.
Top-up plans help you enhance your basic insurance plan at a nominal premium. There are two types of top-up policies. Regular Top-up and Super Top-up. Regular top-up has a single-event deductible.
The deductible is the extent to which the base policy or the insured bears the claim cost. Top-up plans help you enhance your basic insurance plan at a nominal premium. There are two types of top-up policies. Regular Top-up and Super Top-up. Regular top-up has a single-event deductible.
What is deductible?
000 and your claim amount is Rs.20,000. This means the insurer will pay Rs 17,000 for the loss and you will have to bear Rs 3,000. This means that any claim up to the deductible amount is not payable by the company. In the given example the insurer will not pay any claim below Rs.3000. There are two types of deductibles in health insurance. The first is compulsory and the second is voluntary.
- Mandatory Deductible: This deductible is mandatory. This is a fixed amount that the insurance company puts into the policy. Under this the insured will bear the initial portion of the claim. While the insurance company will pay the rest. This deduction does not affect the premium.
- Voluntary Deductible: Under this the insured chooses the extent of voluntary deductible. The policyholder chooses to pay a certain portion of the claim. This amount varies from person to person.
How to choose voluntary deduction
Higher the deductible, lower will be the premium. This helps in reducing the premium, but one must understand that this comes at the cost of bearing a part of the claim later. That’s why one should be cautious about it. You should opt for voluntary deductible only if you can afford the higher amount during the claim.
But one must understand that this comes at the cost of bearing a part of the claim later. That’s why one should be cautious about it. You should opt for voluntary deductible only if you can afford the higher amount during the claim. But one must understand that this comes at the cost of bearing a part of the claim later. That’s why one should be cautious about it. You should opt for voluntary deductible only if you can afford the higher amount during the claim.
Understand like this by example
There is a deductible of Rs 3 lakh on top-up and super top-up. Now there are two claims of Rs 2 lakh each. In case of top-up, the base policy will pay Rs 2 lakh for the first claim and Rs 1 lakh for the second claim. In this situation the top-up plan would not be effective as the individual amount of each claim was within the deductible limit of three lakhs.
The base policy will pay Rs 2 lakh for the first claim and Rs 1 lakh for the second claim. In this situation the top-up plan would not be effective as the individual amount of each claim was within the deductible limit of three lakhs.
The base policy will pay Rs 2 lakh for the first claim and Rs 1 lakh for the second claim. In this situation the top-up plan would not be effective as the individual amount of each claim was within the deductible limit of three lakhs.
While taking a health insurance policy, make sure that it is at leastHave a policy with fewer restrictions, wherein you are able to get quality treatment without any worries.Bhaskar Nerurkar, Head – Health Administration Team, Bajaj Allianz General Insurance
