What is deductible health insurance? How does it work?

Although health insurances are purchased for guaranteed cash inflow during emergencies, a majority of these policies do not offer benefits before a specific time period. While there are waiting periods to deal with in certain cases, the concept of deductible comes across as an important aspect in regards to purchasing specific health insurance plans. In the subsequent sections, we shall talk a bit about health insurance deductible besides understanding the basics and technicalities of the same. We shall also look at how insurance companies charge decent premiums in the name of deductibles which eventually end up benefitting the insured to a certain extent.

What is deductible health insurance? Know the Basics

Put simply, a deductible is more like a self-sustained health care cover, which remains functional before the insurance plans start kicking in. For example, if a policy has a 50,000-deductible limit, the insured needs to pay off the first 50,000 pertaining to the treatment all by himself or herself and only then the insurance would start paying up for the additional expenses. The deductible figure is usually set by the concerned insurance company and once the insured reaches the pre-defined limit, the insurer takes over the claims and starts covering expenses. Therefore, in order to be on the safer side, an individual must carefully choose a health insurance plan that uniformly covers the aspects of premiums and even deductibles; thereby helping him/her stays prepared against inclement situations and emergencies.

How Does Health Insurance Deductible Work?

The concept of deductible in regards to an insurance policy comes from the fact that the insurer doesn’t immediately start covering for the expenses. Instead, it attracts a nominal fee alongside the premiums which eventually builds up and starts paying up in the form of benefits or covers. However, more often than not, the entire sum associated with an ailment or emergency isn’t remitted and the insured needs to first pay off a sizeable amount in full. This is how health insurance deductibles work. That said, even when the insurer kicks in and starts covering the expenses, there are chances that co-payments are required as most policies only cover a part of the medical services, pertaining to the insured and the concerned family.

How to Zero in on the Right Deductible?

Usually, insurance plans with lower premium rates tend to have higher deductibles and vice versa. Therefore, if a person is usually on the healthier side, going with a lower premium and higher health insurance deductible plan might just be the best option. However, in case the insured meets with an accident and has to pay a hefty sum for getting treated, the lower premium policy might just backfire. This is where an insurance plan with a higher premium slab and lower deductible comes in handy. Therefore, the final choice comes down to the existing lifestyle of an individual, health conditions, personal and professional whereabouts, and even the age.

A health insurance plan usually comes with a deductible but in order to negate the loopholes; it is advisable to make choices on the basis of specific life decisions and scenarios. The best idea, however, would be to opt for a plan that offers decent coverage with minimal costs and involved risks.


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
Trade Name / Trade Logo belongs to MEMG International India Private Limited and Cigna Intellectual Property Inc. and is being used by ManipalCigna Health Insurance Company Limited under license. For more details on risk factors, terms and conditions, please read the sales brochure/ sales document available on our website (Download section) before concluding a sale.

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