Understanding Health Insurance Terminology
Knowledge they say, is power. The more information you are exposed to, enables you get affordable deal in insurance. And some of the knowledge you require, is understanding the terminology relating to health insurance.
Health, or medical insurance, is a contract between the insurance company, and the individual, or group, as in the case of corporate buying. The contract contains rules and regulations, and can be renewable monthly, or annually through the payment of the premium.
The contract also stipulates what will be covered, your expected premium, the exclusions, the authorized health care providers, and some other vital information to make the document enforceable.
While preparing to get covered, knowledge of health insurance terminology will help you speak confidently to your insurer.
Here are the basic words you are likely to encounter.
Premium.
This is the amount you are expected to pay monthly to the company to keep your cover active.
Deductible.
This is the amount you have agreed to pay out of your pocket, as your contribution to your health bills. When you pay this, which is usually little, the insurance company pays the balance.
Co-payment.
This is the money the policy holder pays out of his pocket before the insurer pays for a particular service.
Co-insurance.
This is a percentage of the total cost that a policy holder pays while the company pays the balance.
Exclusions.
These are services not covered by the policy. If you are befallen by any of the uncovered sicknesses, you will bear the cost all alone, without help from the company.
Coverage.
This is the stipulated limit of your cover. If your policy covers you for a maximum of maybe $5, 000, and you incur a medical debt above that, the excess amount shall be borne by you. Read more