Health is an intricate matter, and it is important to pick an insurance plan that is right for you. For this to happen, understanding healthcare terms is necessary. So, we have defined 5 common health insurance terms which will help you choose the best plan.
- Health Insurance: Contracts sold by insurance companies under which they agree to cover the financial risks associated with an illness or accident. These can be indemnity contracts or fixed benefit contracts.
- Sum Assured: The maximum amount of money an insurance company agrees to pay in case of a claim by the customer.
- Indemnity Contracts: This is the most popular form of health insurance in India. Herein, an insurer agrees to cover the expenses associated with an illness or accident up to the sum assured to the customer. However, it is limited to the actual expenses incurred in the treatment.
- Fixed Benefit Contracts: Health Insurance policies where the insurer commits to pay a pre-defined sum in the event of specified illnesses or accidents, irrespective of the actual expenses incurred by the customer.
- Exclusions: Conditions under which health insurance will not cover the risks.