Keshav is an individual who has now been working for over a year. As most working individuals look for various investment options, Keshav’s hunt also began. He comes to know of the plethora of choices that he has. Selecting a few is challenging for new investors.

Nevertheless,the one thing he was advised while shortlisting investment avenues is to make sure he opts or a health insurance policy. After reading about the benefits of a medical insurance plan, Keshav decides to opt for a health insurance plan no matter what.

Now he has to tackle the jargon used in insurance policies. Are you like Keshav?

Do you often find yourself struggling with these jargons while looking for someone to simplify them?

You are at the right place!

Here we simplify all the mumbo-jumbo that scares you from insurance in general –

Sum Insured

Sum insured is the maximum amount that your insurer will pay in the event of hospitalisation. One must note that you need not be hospitalised to receive the claim but can also avail other treatments like day-care procedures. These terms are according to your policy guidelines and must be looked into before buying.

Pre-Existing Diseases

Pre-existing diseases or PED is the medical condition that the insured already suffers from at the time of buying health insurance plans. Your insurance company covers these health ailments under the policy. Still, one has to wait for a specific duration known as ‘waiting period’ after they can file claims for these ailments.

Waiting Period

As stated above, pre-existing conditions are covered in your medical insurance after a specified duration. This period varies from each insurance company and may range from anywhere between 12 months to 48 months. These waiting periods are generally observed for critical illness insurance plans or other policies that offer coverage for PED.


Co-payment is an out of pocket expense that needs to be borne by the insured at each claim. Co-pay is generally a pre-decided percentage of your claim amount. For instance, if your health insurance policy has a co-payment of 10%, any claim amount shall be borne by the insured to the extent of 10%.


A deductible is that component of your policy after which the insurance coverage kicks in. At first, it may sound synonymous but is different from co-payment. While co-payment is a fixed percentage which is a shared expense between the insurance company and the policyholder, deductible, on the other hand, is required to be paid by the policyholder before the insurance company extends its insurance cover. It is advisable to opt for cashless health insurance to enable quick & hassle-free payments in your time of need.

Free-look Period

The regulatory body has permitted a free-look period of 15 days for all insurance policies. You can cancel your policy in case there are differences between the terms and conditions as pre-decided during the period. The premium paid shall be refunded after deducting administrative charges and coverage for the period insured.


Portability of insurance plans gives the policyholder the option to change insurance companies in case you are not satisfied with one. The highlight feature of portability is you can retain all your benefits accrued from the previous insurer while shifting to a new insurance company. This feature also comes handy when you want to change your insurance plan while staying with the same insurer for broader coverage.

To conclude, understanding these terms will help you make a concise choice while selecting a suitable plan for yourself.