This video will discuss about deductibles and co-payment features in health insurance plans
For health insurance plans, you get tax deductions under Section 80D
Deductible and co-pay is the amount that is deducted from the health insurance amount before payment is made for the claim
This is also called co-pay since the insured and insurance company are both paying parts of the expenses
In India, co-payment and deductible is typically a sum of money and not a percentage as is prevalent abroad
The advantage of co-payment and deductible is that it reduces the health insurance premium
Co-payment and deductible is a kind of self-insurance
This also becomes important when comparing health insurance plans. For the same sum insured, a lower premium plan maybe because of a deductible
So, it is important not to just compare health insurance premium but also other features like deductibles
Deductible should be used by people who think that they can handle expense equal to the amount of the deductible
Since one gets tax deduction under Section 80D, one should try and maximise health insurance coverage