When enrolling to a certain individual health indemnity offered by insurance companies, we at times get confused by the various terms that the insurance agents use. Some of these terms are inscribed on the forms you are to fill. Without understanding what some of these terms mean, you may end up choosing a plan that does not suit your needs. That is why it is important for you take a short educational tour and learn some of the terms that are used to describe personal health indemnity plans.
One common cross platform insurance term that is also used in individual health insurance is premiums. Premium is the required monthly payment that is charged by the insurance company. The amount charged may vary from one policy to another. Normally, the higher the premiums one pays the better the health care coverage they will receive.
Deductible is also another widely used term in the individual health insurance industry. This is a term used to refer the initial lump sum amount, which is paid to the insurance company. This amount will be the first to be deducted for the health services rendered before the health coverage kicks in. People who pay higher deductibles are usually charged lower premiums.
Another term used by personal health insurance companies is co- insurance. This is the remaining percentage that you are requested to pay after they have deducted the medical fees from your insurance cover. The co- insurance is usually charged in percentage and fractions. So if you are told that your plan offers you 75/15 co-insurance, what it will mean is your insurance company will cater for 75 units while you will pay 15 units.
Last, but not least is co-payment. Co-payment is a fee that you may be required to pay when receiving some additional health services; for example prenatal care, medical checkups among others. Most of the insurance companies offer affordable co-payment rates to their clients. By knowing some of these terms, the next time you will visit your insurer, you will have a feel of what is being talked about.
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