What Are Health Insurance Deductibles?

It is advisable to read the terms and conditions carefully when you buy a health insurance policy. But reading the fine print will not make sense unless you understand the technical terms related to it. One such term is deductible. An insurance deductible is the initial amount you must pay before your insurance coverage gets activated and the company starts reimbursing you. Generally, a higher deductible may lead to lower premiums. This is because, with a higher deductible, you take on more initial financial responsibility before the insurance coverage begins, influencing the overall expense of your policy. How Does It Work? Once you pay the upfront deductible amount, the insurance company takes over and covers the rest of the claim according to the policy’s limits and conditions. Let’s say you have a policy with a sum insured of Rs 3 lakh and a deductible of Rs 30,000,...