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Health Insurance

Understanding health insurance terminology

One of the challenges most people face when buying individual insurance plans is understanding the sea of terminologies and acronyms. Having a bit of knowledge of the industry’s terminology is crucial, especially if you’ll be shopping without the help of a mortgage broker, so here are some of the most commonly used terms.

Premium

Premium refers to the amount of money you pay to your health insurance provider every month to maintain your coverage. This is one of the most important things you should consider when buying health insurance because it directly affects your affordability.

Copayment

Copayment or co-pay is a flat fee that you pay for medical expenses every time you visit the hospital. It is one of the ways that you share your medical costs, so if you have frequent doctor’s visits, ensure that you pick cover with affordable co-pay.

Deductible

This is the amount of money you must pay every year for covered services before your insurance policy starts paying. For example, if your deductible is AED 1000, you will have to pay the first AED 1000 of covered services yourself. Health insurance plans with lower deductibles offer more comprehensive coverage, but they will have higher premium costs.

Coinsurance

Coinsurance is the percentage of covered services that you will be required to pay after you’ve paid your deductible. For instance, if your insurer pays 80% of all incurred costs, then you will be required to pay the remaining 20%. Like the deductible, health insurance covers with lower coinsurance have higher premium costs.

Out-of-pocket maximum

This is the most money you have to pay for covered services in a plan year. After you spend this amount on copayments, coinsurance and deductibles, your health insurance company will now cover 100% of the costs of covered benefits. That said, it is important to note that the out-of-pocket limit doesn’t include monthly premiums or any services that your plan doesn’t cover.

When shopping for group medical insurance, pay close attention to these terminologies as they greatly impact your insurance costs. Compare different plans from different companies using our website to find the perfect one for you.

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Categories
Travel Insurance

5 ways to get cheaper travel insurance

After spending your hard-earned wages on a lovely holiday, it is understandable that you want to get the best deal on the best travel insurance.

Just by making sure that you are insured for your trip may save you money. Unforeseen cancellations, costly medical bills and losing your luggage – each of these things could cost you dearly if you are uninsured.

Here are 5 other quick tips on saving money.

Compare the market

Don’t just go with the travel insurance offered by your chosen travel agent. Make sure that you have thoroughly researched the market for the best deal. The easiest way to do this is with an online insurance comparison site, such as Compare Insurance.

Only pay for what you need

Insurance policy documents are often lengthy and can be tricky to read. However, take the time to go through the document carefully and make sure that you are not paying for something that you don’t need. Removing extras like winter sports add-ons, for example, can help reduce your premium.

Increase the excess

This option has pros and cons. Paying an ‘excess’ refers to the amount of money you will have to pay towards any claim that you make on your travel insurance. The amount varies, and the more money that you are prepared to pay towards your claim, usually the lower your overall travel insurance premium.

Think carefully though before you go for this option. If you do need to claim on your travel insurance, have you got the money readily available?

Is this your only trip?

Although an annual travel insurance package works out more expensive than a single trip premium, it could work out cheaper if you are planning any other trips in the coming 12 months. Paying for several single cover travel insurance premiums will work out more expensive in the long run.

Avoid countries with expensive healthcare

The United States, Mexico, Canada and the Caribbean all have expensive healthcare. This will be reflected in the high cost of your premium. If you really want to keep the cost of your travel insurance low, avoid these destinations.

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