Concept of co-payment
Many of us always look for an option to buy less expensive health insurance as we feel that spending money on insurance is not a wise decision. While you continue to hunt for less expensive health insurance or ask the companies to provide an affordable quote, do you know that you might be losing out on complete coverage or end up purchasing insurance with less sum insured?coverage??
Few people choose co-payments when purchasing a health insurance policy in order to reduce their financial burden.?There is no doubt that purchasing insurance with such options does not put much burden on your packet but before opting out for such options, we need to understand the terminology?so that one should not be surprised to pay?a part of the admissible claim amount from his/her pocket at the time of claim.?
The following example can help you to understand co-payment better -
Co-payment - ?Raman wants to buy a car and requested his parents to gift him on his birthday. His parents agreed provided that he finds a job and?sustains the same for at least 6 months. But Raman says he is preparing for some exams hence he cannot promise sustainability?but he will find some alternative option such as a part-time job so that he can utilize the remaining time on his preparations. His parents agreed to it however, they ask Raman if he has to pay 10% of its price from his savings. Raman says okay. He just agreed to co-payment.?
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Similarly?in health insurance when you opt for co-payments, you agreed to bear the admissible claim amount to the extent of a percentage that you choose while taking the policy. This 10 or 20% of co-payments may help you to buy insurance with a lesser premium but if you look at it from the perspective of a claim then you might be paying back a higher amount from your savings on the admissible claim amount.??
Next time when you purchase insurance, let's review all of your requirements cautiously..!!