Common Health Insurance Terms You Need To Know
The insurance world is one that is easy to grasp when it comes to its fundamentals, but is riddled with various terms that can confuse many policyholders when it’s time to make a claim. We take a look at the essential tool that is health insurance by explaining the most commonly used terms in this multi-billion dollar industry. Premiums and Claims These have been grouped together as they cover the basic functions of the industry. Premiums are the amount that a policyholder has to pay to an insurance company for the coverage. A claim is when a policyholder submits a request for the insurance company to reimburse them for a payment that falls under the agreed stipulations within their policy. Deductibles While most people usually only look at their plan’s upfront costs (premiums), the policy’s deductible should also be factored into the overall cost of your health plan. The term refers to the amount of money you have to pay every year to cover eligible incidents before your insu