Understanding Insurance Terminologies
Cheapest Health Insurance in Dubai has become a necessity for everyone nowadays. With medical inflation flaring up, investing in a health insurance policy is a wise decision. However, many people still hesitate to buy one due to various reasons. One of the major contributing factors is the lack of awareness about health insurance. Also, the question about the claim settlement by insurers adds to people’s worries about investing in a health policy. To increase health insurance penetration, it is crucial to make health insurance simple. Knowing some important health insurance terminologies can clarify the doubts revolving around them.
What are Some Important Health Insurance Terminologies?
People need to know various terms and functionalities to understand health insurance completely. However, by knowing some common terminologies, people can make informed decisions while purchasing and renewing health insurance and making claims.
First and foremost is the sum insured or Annual Aggregate Limit. This is the overall coverage offered by a health insurance policy. The premium (i.e., the cost of health insurance) will vary based on the amount of coverage. Many health insurance policies extend coverage for in-patient hospitalization, which means that if people are hospitalized for more than 24 hours, the insurance will provide coverage for them. On the other hand, many plans also cover outpatient consultations if this feature is mentioned.
This means regular doctor consultations, diagnoses, lab tests, etc., that do not require people to get admitted to the hospital. Similarly, daycare treatments are also eligible for coverage under almost all health insurance plans. Daycare treatments constitute treatments/surgeries that would typically have taken more than a day but are done within 24 hours due to technological advancements.
Health Insurance coverage can be categorized into some broad sections. One such cover is Maternity and New Born cover. The medical expenses incurred on pregnancy, childbirth, and newborn baby’s treatment is normally covered under this. Some policies may have a waiting period for this cover, so checking for it before opting for a plan is essential.
One of the important insurance terminologies is the Waiting Period. This is one of the major reasons that cause various claim-related disputes. Not all health plans start offering coverage for everything from day one. Generally, health insurance policies come with different kinds of waiting periods, until the completion of which the coverage will not start. Some examples include the PED waiting period, Maternity waiting period, etc. For instance, if a policy has a PED waiting period of 24 months, the insured person’s pre-existing diseases will not be covered by the insurance until the completion of 24 months. Hence, people must check the waiting period before purchasing a plan.
The terms mentioned above are just a few among many. People need to know about such terminologies to avoid last-minute hassles. Also, it is high time for insurers to make health insurance simple. This will bring clarity and transparency, thus helping increase health insurance penetration.
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