What does deductible mean in health insurance? A deductible in insurance is an amount that is not reimbursed by the insurer to the policy owner. The cost of insurance depends on the deductible and its type. The most expensive policy will be the one with a zero deductible, when the insurance company reimburses the cost in full.
The concept of deductibles in insurance
The cost of any insurance depends on the breadth of the list of services provided. At the same time, there are a number of conditions under which these services may be provided by the insurance company. The more services are included in the policy, the more expensive it will be. Excess is the amount of money specified in the contract, which the insurance company will not compensate to the policyholder should an insured event occur. Anything that goes beyond the stipulated terms, the insurer is obligated to reimburse. As a rule, deductibles are small and not burdensome for the client, but allow reducing the cost of the insurance contract to 30%.
What are deductibles in medical insurance?
Contracts with a deductible most often have a standard indemnity scheme, which is used by most insurance companies. Voluntary medical insurance distinguishes the following types of restrictions on payments.
- Conditional – the policy stipulates in advance the amount that will not be reimbursed by the insurance. If the costs go beyond the planned damage, only the difference between the two amounts is compensated.
- Unconditional – in this case, if the agreed upon benefit is exceeded, the insurer company pays the policy holder the full amount of damage.
- Temporary – the restrictions in payments do not apply to the amount of damage, but to the time of insurance services. For example, if you sign a contract for a year, the deductible is 1 month – in this case, the damage incurred during the month will not be reimbursed. This kind of restriction is used to combat fraudsters.
Medical insurance with a deductible in each individual case is beneficial to a certain category of clients. For example, a contract with a conditional type of insurance benefits will suit the heads of organizations and young people who want to insure against serious illness. The unconditional type is the most acceptable option for people of advanced age and living in areas with unfavorable epidemiological situations. Finally, the time-limited benefit is advantageous for those who want a tangible discount and at the same time are sure of their health for the near term.
If you want to fully protect yourself from such nuances, then the insurance without a deductible is the best option. Such an insurance policy will cost more, but if an insured event occurs, the damage compensation will be fully covered by the insurer.