If you are troubled by the increasing premium of health insurance year after year, then we are telling you a great saving idea. By adopting this idea, you can easily save 20% to 25% in the premium of health insurance. You must be wondering what that idea is, then it is the option of co-pay.
By choosing this option, you can easily save a good amount. Insurance experts say that although it is beneficial for everyone, but it is more beneficial for senior citizens because their premium is very high due to health risks. Apart from this, there is another option to reduce the policy premium, that is deductible. You can also reduce the premium by using this.
Let’s understand with an example
Let’s assume that you have taken a family floater health plan for yourself and your family from an insurance company. Its annual premium is Rs 20,000. Now if you choose 20% co-pay, you will be able to easily save Rs 5,000. Apart from this, many health insurance companies give the option of deductible. In deductible, you pay a fixed amount first. After this, the insurance company pays the claim amount. If you choose the deductible option, the premium amount decreases.
Difference between deductible and co-pay
The amount that you pay before the claim by your health insurance company is called deductible. Whereas, in co-pay, you pay a fixed part of the claim amount. It can be 10% to 20%.
How does deductible work?
Suppose you have a health insurance policy of ₹10 lakh, in which the deductible amount is ₹50,000. Whenever you file a claim of ₹4 lakh, your health insurance company will pay only ₹3.5 lakh. You have to pay Rs 50,000 first. In other words, your health insurance provider is only liable to pay medical expenses that exceed the deductible amount.
Why should one opt for a deductible?
Lower premium – Opting for a deductible helps in reducing your health insurance premium.
No Claim Bonus protection – Opting for a deductible can help you build your No Claim Bonus as you will avoid filing claims for small expenses.
Coverage amount – Deductibles can also help in protecting your insurance amount at the time of actual need. Since you will not make claims frequently, your insurance amount will remain intact.
