Deductible and Co-pay Difference
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It is rightly said health is wealth! Good health is a blessing for all, especially in today’s time when there are a number of health problems affecting people from different sections of life. With changing and unhealthy lifestyles, the number of health problems is only increasing. Thus, it becomes very important to protect your health effectively. The best way possible to ensure protection for your health is to buy health insurance plans. Now, while buying health insurance plans, there are a number of terms that you need to be aware of such as deductibles and co-payment. So, let us walk you through the difference between deductible and co-pay.
What is Deductible in Health Insurance?
One of the most commonly used in health insurance is deductibles. Deductibles in health insurance mean the minimum amount that a policyholder insures in order to start getting the benefits of health insurance. For example, if you have a health insurance plan with a sum insured of Rs. 50,000, and a deductible of Rs. 5,000. Then, it is only after your medical expenses exceed the limit of Rs. 5,000 that you will start enjoying the benefits of health insurance based on the sum assured. Moreover, it is important to understand that the deductible and health insurance premiums are indirectly affected. For instance, if the deductibles are lower, then the health insurance premium will be higher.
What is Co-pay in Health Insurance?
As the name suggests, a co-pay in health insurance means that there is a certain amount that the policyholder agrees to pay while buying a health insurance plan. This amount is called a co-payment in health insurance. For example, if you plan to buy a health insurance plan with a sum insured of Rs. 50,000, and you choose a co-payment of 10%, then the policyholder will have to pay 10% of the sum assured when you raise a health insurance claim. It is important to note that the higher the co-pay amount, the lower will be your health insurance premium. Moreover, the co-pay amount is determined during the time of buying the health insurance plan.
Difference Between Deductible and Co-pay
Listed below are the difference between deductible and co-pay:
|
Point of difference |
Deductible |
Co-pay |
|
Definition |
Deductible is the minimum amount that is paid by the policyholder after which they can benefit from health insurance |
Co-pay is the amount that the policyholder agrees to pay along with their insurance plan |
|
Frequency |
Deductible in health insurance is paid every year |
A co-payment in health insurance plan is paid every time you raise a health insurance claim |
|
Form |
Deductible is usually a form of fixed sum |
Co-pay, on the other hand, can either be in the form of a sum of amount or percentage |
Take Away
Thus, now that you know the difference between deductible and co-pay, we hope it will become easier for you to buy health insurance plans. You can explore a number of health insurance plans on InsuranceDekho.
Also read: Mental Health Cover in Health Insurance
