Deductible, in health insurance, is the amount which you agree to pay for your medical expenses before your insurance company pays for the same. In other words, a deductible is the concept of cost sharing between you and your insurance company for paying for your health care expenses.
Let's understand this with the help of an example:
Consider a hypothetical situation that you have opted for the following options while purchasing the health insurance policy:
SI (Sum Insured): INR 10 lakh
Deductible: INR 3 lakh
Now, if you file a claim for INR 4 lakh, the insurance company will not pay the complete claim amount. You will have to pay INR 3 lakh out of your pocket and the remaining INR 1 lakh will be paid by the insurance company. This is because you had opted for INR 3 lakh as the deductible amount.
Thus, it is best advised to have a detailed discussion with your general insurance company about the SI and deductible, before you purchase a health insurance policy.
Here are a few important things that you should know about deductibles:
Health Insurance is a service that looks after your finances in case of medical emergencies. It is best advised to get an insurance policy which fulfils to your requirements. Buying an insurance policy with lower premiums is beneficial but health is more important than wealth, so choose your deductibles and the health insurance policy wisely.
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