Co-Pay Policy: Such insurance in which the bill has to be paid from your pocket, know about it...
In health insurance, the co-payment is a fixed percentage of the claim amount, which is paid by the insured himself. This percentage is decided at the time of buying the policy. Therefore, you must check the policy documents to know about any applicable co-payments before purchasing. The co-payment usually ranges from 10% to 30% of the claim amount. Let's understand it with an example. If someone has a 20% co-payment on his health insurance policy and has claimed Rs 2 lakh, then he will have to pay Rs 40,000 from his pocket.
This is different from the deductible. The major difference between the two is that in co-payment you have to pay a fixed percentage of the claim, while deductible is a fixed amount. It is decided every year. However, both these costs are paid during a claim before the insurance coverage begins. Also, the co-payment can be applied only to specific covers or services. For example, on diseases with high treatment costs or going to a hospital for treatment that is outside the network of hospitals of the insurance company. The deductible applies to the full cost of the medical coverage.
What is the benefit of co-payment
This can work in your favor only if you know that you are healthy and you will not need to go to the hospital or undergo major treatment shortly. This is because its biggest advantage is that its premium is very low. The higher the co-pay, the lower the premium. Apart from this, it also prevents any person from getting admitted to the hospital for minor ailments.
This type of insurance policy is not liked very much. The biggest reason for this is that if you have to pay from your pocket at the time of illness, then what is the benefit of taking insurance? Here the whole purpose of insurance gets destroyed. Playing with life just to save money is not advised by experts. Due to co-payment, many times people do not go to the hospital to get admitted for any major illness. This is also a big disadvantage of it.
Should you buy this policy
If you feel that you are ready to take the risk then this policy can be bought. Before taking this policy, any person should get a full medical checkup done once so that there is no possibility of any hidden disease.