5 health insurance terms you should be aware about

In a world where the number of diseases keeps increasing every year and more and more people get hospitalised due to them, the burden on the healthcare system also increases. This has caused the cost of healthcare to rise as well, which makes access to basic health facilities unaffordable for many people.

In such situations having a health insurance, such as an individual health insurance can be quite helpful. It helps in covering the medical expenses during an emergency. However, when you buy a family health insurance for you and your family, there are certain terms that are contained in the policy which can be confusing. Here are 5 such terms that you should know when buying the policy:

1. Add-on covers or Riders

When you buy an individual health insurance, your main requirement will be for the policy to cover all the major expenses incurred during the hospital stay. Apart from the cost of medical procedures, there are other costs incurred such as bed charges, nurse charges, and ICU charges. Some insurers only pay for the medical procedure performed while the rest of the costs have to be covered by you. An add-on in the health insurance policy, however, helps in covering these costs as well. This ensures that you do not have to spend a single penny out of your own pocket.

2. Reinstatement benefit

Your family health insurance covers the cost of the medical expenses of you or your family member with the help of sum insured in the policy. However, the downside is the medical expense of every family member is covered in that amount of sum insured, which could get exhausted after some point. This could cause a huge disadvantage in the event of a family emergency after the sum insured has been exhausted. If your insurance has reinstatement benefit, then once your sum insured has been exhausted, the insurer will automatically refill the sum insured of your policy.

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