11 Must-Know Health Insurance Terms

By BankBazaar | August 1, 2018

Don’t know much about Health Insurance? Here are some terms that will help you.

11 Must-Know Health Insurance Terms

If you believe in the phrase ‘health is wealth’, you must know the importance of investing in the right Health Insurance plan. With gradually degrading conditions around us,—the increase in pollution, food adulteration and a fast-paced lifestyle – staying healthy has become next to impossible.

Additional Reading: Everything You Need To Know About Mental Health Insurance

Average life expectancy has seen a steady increase over time in tandem with the advancement in medical facilities. Paying a ton of medical bills can turn out to be a disaster and destroy your monthly budget. But in order to avail medical facilities and fight diseases, you need money and this has increased the necessity for a Health Insurance cover. So, it’s wiser to invest early on in a good Health Insurance plan. To choose the right plan, you need to be familiar with certain related terms. Here are some of the must-know Health Insurance terms.

Beneficiary

A beneficiary is a person who is entitled to receive distributions from a trust, will or Life Insurance policy.

Coverage

The range of protection provided under a contract of insurance and/or any of numerous risks covered by a policy.

Death Benefit

The amount of benefit on a Life Insurance policy or pension that will be paid to the beneficiary in case of the death of the insured person.

Restoration Benefit

This is a backup that’s in place to help you in case you exhaust your sum insured. If you happen to drain your entire cover, the restoration benefit replenishes it automatically. It, therefore, covers possible hospitalisation charges if they are incurred within the policy year.

Convalescence Benefit

While some insurance policies only cover the hospitalisation charges, some also cover the recovery expenses. This is known as convalescence benefit or recuperating benefit. In case the hospital stay gets extended, a lump sum is provided to the policy holder.

Room Rent Limit

As a part of the insurance cover, the boarding rent of a hospital room is covered too. Depending on the policy provider, it can either be a fixed amount or a certain percentage of the sum insured. This is a crucial factor to look at while choosing a Health Insurance plan.

Co-pay

This is the fixed amount that’s charged based on the type of medical service provided. Also known as co-insurance, co-pay basically states that a part of the expense is taken care of by the insured, while the majority is paid by the insurer.

Pre-existing Illness

If you have received treatment for a particular medical condition prior to opting for a new Health Insurance plan, it is considered to be a pre-existing illness.

Domiciliary Hospitalisation

If any disease, injury or ailment is treated at home either because of lack of space in the hospital or patient’s critical condition that makes it impossible to treat them at the hospital, it is referred to as domiciliary hospitalisation.

Alternative Practice

Various medical practices that are used as a replacement for traditional healing methods are referred to as alternative practices. These don’t fall under the traditional practices and hence aren’t covered by all insurance policies.

Daily Cash

A fixed amount that is given to you during the hospitalisation period and paid over and above your medical benefits is called daily cash. Depending on your insurance provider, this amount can vary.

Additional Reading: What To Look For In A Health Insurance Plan

All set to get the best Health Insurance plan? We can help!

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Category: Health Insurance Insurance UCN
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