What is Aggregate Deductible in Health Insurance?
Choosing Aggregate Deductibles in Health Insurance
Understanding health insurance can be challenging. One term that often comes up is "aggregate deductible." But what does it really mean? An aggregate deductible is the total amount you must pay for covered services before your insurance kicks in. This applies to all covered family members under a plan.
As per the aggregate deductible system, an insurer starts paying once the predetermined amount has already been spent on medical treatment. The claims are considered to be valid even if made by a single family member.
How Does it Work?
Consider a family health insurance policy that has a total deductible of Rs. 50,000. If one member of the family has medical costs amounting to Rs. 30,000 and another member has expenses of Rs. 20,000, the combined expenses would equal Rs. 50,000. As this amount satisfies the total deductible, the insurance provider would begin to pay for any further medical costs for the remainder of the policy term.
Advantages of an Aggregate Deductible
●They help lower the overall cost of owning a medical insurance plan. It is a great resort for people who are unlikely to make frequent claims. The higher the deductible you choose, the lower the premium you will be liable to pay.
●Many insurance companies offer you concessional rates for mediclaim policies when you avail of voluntary deductibles.
●As aggregate deductibles make the policyholder pay out-of-pocket for insignificant medical expenses, there remains a greater chance of earning and eventually maintaining the status of a no-claim bonus.
Is Aggregate Deductible Good for You?
Well, it depends. If you are looking for a more affordable health insurance premium, then an aggregate deductible can seem more convenient to you. Also, when you maintain a healthy lifestyle and do not foresee yourself filing claims in the near future, an aggregate deductible can be a suitable choice.
Alternatively, for individuals who are seeking protection from chronic medical conditions, it is next to impossible to predict annual out-of-pocket costs as they are linked with all the medical bills for that particular year. Therefore, a more deliberate approach is necessary when selecting an aggregate deductible.
The only downside is that it may discourage the policyholder from seeking prompt medical attention due to temporary financial concerns.
If you are still confused about how the aggregate deductible enhances the efficiency of a medical insurance plan, you may check out Section II of Star Extra Protect. It is a family insurance plan add-on cover that enables the policyholders to seek up to 30% discount on premium as they avail aggregate deductible on the base policy. This helps fortify the medical protection and restores happiness in your family.