Deductible, coinsurance, premium, preexistence, are just some of the terms that you should know when hiring insurance for major medical expenses. Learn how to choose the one that suits you best.
When deciding to buy insurance for major medical expenses, one thinks of preventing the bills that would have to be paid in the event of a possible accident or illness, which is why the terms in which it will be acquired must also be taken into accounts, such as choosing between paying a major higher premium or deductible.
They are those that cover the injury or disability that affects the integrity or health of the insured, caused by an accident or illness. The insurer covers hospital expenses, medical attention, surgical interventions, medications, clinical tests, x-rays, among others, to the insured and, where appropriate, to economic dependents, according to the Confused.
The amount of the premium is determined considering factors such as age and sex, mainly, but also sums insured contracted coverage and health status.
“The insurer applies a questionnaire to determine the premium, it is important that when you answer it you do so truthfully since not doing so empowers the insurer to terminate the contract without any benefit for the insured,” Profeco says on its page. Internet.
Another point to review is the amount of the deductible, which is an amount of money that you agree to pay as part of a claim before the insurer agrees to pay the rest of the amount.
For example, if you have coverage with a deductible of 200 pesos and you had a loss of 500, you would have to pay 200 pesos and the insurance company what is missing, which would be 300 pesos.
Ramos explains that when a low premium is chosen, the cost of the deductible increases, and vice versa, when the premium is high, the amount of the deductible decreases. So, a high deductible is chosen when you bet that the insurance will not be used and you want to pay a low premium according to your possibilities. On the contrary, a high premium is chosen, so that in case of illness or accident you pay a lower deductible, and the rest is paid by the insurer.
Also, it must be taken into account that the insurer will not pay for accidents or illnesses whose care or treatment implies an amount less than the deductible.
In addition, for each insurance plan, there is specific coverage, so it is convenient that you review the content of your policy and verify the coverage of your plan.
According to Barrientos, insurance for major medical expenses must have coverage that is following the needs of each person, since there is no point in paying for something that is not going to be used.
It should also be taken into account that you have a reasonable sum insured to be able to face catastrophic illnesses such as cancer since it is these illnesses that seriously damage the economy and family stability.
TERMS FOR THE PAYMENT OF YOUR POLICY
types of the term to pay your policy are annual, semi-annual, quarterly, or monthly. If you choose an annual payment method, you will pay the cost of the insurance in a single installment, but if you choose another, the insurer will include an extra amount within the amount as a financing cost.
From the moment you contract your medical expenses insurance, regardless of the payment method, you have chosen, according to the law you have 30 days to make the payment of your policy, as well as to make any clarification on the content of the same. You have the same period to renew it.
If you plan to change companies or plans, the insurer must endorse you so that they recognize your seniority, that is, the time you had been covered by the previous insurance. Otherwise, the new company may not agree to cover pre-existing conditions.