The importance of health insurance in today's unpredictable world is not concealed from anyone. Everyone knows the value and the necessity of having a health insurance plan, which fulfills their specific set requirements. Despite this, the penetration of health insurance is low in Indian market. One of the reasons for this might be the lack of understanding about certain terms being used with respect to health insurance.
Let's have a look at some of the terms you should know before purchasing the health insurance policy for yourself and your family.
What are pre-existing diseases?
Pre-existing diseases are the ones which you, the insured, suffer from before taking the policy and which must be declared by you to your insurer at the time of buying the medical insurance plan. The coverage for the pre-existing diseases starts after a certain waiting period as mentioned in your health insurance policy document.
What are specified diseases?
Specified diseases are the ones that are listed by the insurance companies along with their health insurance policies and there is a time bound exclusion applicable, before you start getting coverage for them.
What is waiting period in health insurance?
Waiting period in health insurance is the specified amount of time for which your health insurance policy will not cover you for any pre-existing diseases that you might have mentioned in your proposal form while purchasing the health insurance policy. The waiting period differs from company to company and it also depends on the type of your pre-existing conditions.
What is free look period in health insurance?
Health insurance policies have a free-look period of 15 days, which gives you an opportunity to analyze the policy and go through all the terms and conditions to check if it suits your requirements. Within these specified 15 days if you find the policy inapt, you can get it cancelled and the general insurance company will refund the premium amount paid by you.
What is grace period?
Grace period is like an extension provided to you by your insurer, in case you forget to pay your insurance premiums on time. The grace period is generally of 30 days. However, you should note that you will not be provided any coverage during these 30 days and you will also not be able to register the claim unless you renew health insurance on time.
Having a clear understanding of the jargons used in health insurance policy is a must before you make the final decision of purchasing a suitable medical insurance plan. Hope the simplification of these terms will clarify your doubts and help you choose the most appropriate health insurance policy for yourself and your loved ones. You can also read our detailed article on demystifyinsurance.com, which has more health insurance terms demystified.
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