When you start looking for a health insurance policy, you have to take a few calls. The first step is to choose the right type of medical insurance. You can choose among individual insurance, family insurance, COVID-19 insurance, critical illness insurance, etc. Next, you need to look at the sum assured and the premium of the plan. You also need to choose the deductible carefully so that you can get the best health insurance plan in India for your needs.
Today, we will be talking about the types of deductibles in health insurance and how you should choose a deductible for optimum benefit.
Understanding Deductibles in Health Insurance
In health insurance, a deductible is an amount the policyholder agrees to pay at the time of claim settlement. When you buy a health insurance policy, the insurer allows you to choose a deductible based on your preference. The premium of the policy is calculated after factoring in the agreed deductible. So, if you agree to a deductible of 10% and file a health insurance claim for ₹1 lakh, then you need to pay ₹10,000, and the insurance company will reimburse ₹90,000. Since the insurer’s liability is reduced, you can expect some discount on the premium of the policy.
What are High and Low Deductibles in Health Insurance?
When you are deciding on the deductible for your health insurance plan, you can either choose a low amount or a higher one.
- Low deductible – is ideal for people who require frequent medical treatment and care. When you opt for a lower deductible, your out-of-pocket expenses are lower. While the premium is high, there is a lesser financial burden on you during a medical emergency.
- High deductible – is preferred by people who seldom need medical care. When you opt for a higher deductible, your out-of-pocket expenses are higher. The premium is low, but you need to manage a larger portion of the claim.
Which Deductible Should You Opt for?
A medical plan deductible is offered to help you reduce the premium of the policy by agreeing to manage a portion of the claim. Insurance plans with low and high deductibles are designed for the varying needs of individuals. So, if the policy is covering an individual with a critical illness or a senior citizen where regular treatment is needed, then it is prudent to choose a health insurance plan with a lower deductible. Even if the policy covers an expecting mother or a family member with a pre-existing illness, opt for a lower deductible.
On the other hand, youngsters and individuals who do not have older dependents tend to opt for a higher deductible. Also, people who have kept aside a corpus for medical treatments can use a higher deductible to get insured at a lower premium and easily manage minor treatments.
Health insurance plans are designed to offer financial protection to you and your family during medical emergencies. Therefore, it is highly recommended to get medical insurance, but keep in mind that every individual and family is unique and has specific requirements. Before you make the purchase, assess the medical condition of all the people that are going to be covered under the policy. This will help create a list of features and benefits you need from the policy. Next, look for an online health insurance policy that offers the best coverage. If the premium is too high, consider tweaking the deductible to make it cost-efficient. Good Luck!