• Glossary-banner
  • Glossary

    Health Insurance Terms Made Easy To Understand.


Premium is the amount an insurance buyer must pay to an insurance provider in order to avail of health insurance coverage. Insurance companies typically charge premiums on an annual basis. Policyholders must pay premiums every year on or before the policy expiration date to renew their health insurance plan and receive uninterrupted insurance benefits.

Pre Hospitalisation Medical Expenses

Pre-Hospitalisation Medical Expenses are those that a patient typically bears during the illness diagnosis stage. During this stage, patients may need to consult doctors and undergo screening tests. Based on their condition, the doctor may recommend hospitalisation or surgery. Thus, the costs incurred before a patient is hospitalised are known as pre-hospitalisation medical expenses. Insurance companies usually cover expenses incurred up to 30 days before hospitalisation.

Post Hospitalisation Medical Expenses

Post Hospitalisation Medical Expenses are those a patient must incur after being discharged from the hospital. Patients typically have to incur these expenses based on a medical practitioner's recommendations and to prevent the relapse or recurrence of a medical condition. Examples of post-hospitalisation medical expenses include medical consultations, follow-up treatments, medication, diagnostic tests, etc. Insurers generally cover costs incurred over 45-90 days after hospitalisation.

Payment of Claim

Payment of a Claim is the sum an insurance company pays a policyholder if the latter files a rightful insurance claim. It is the benefit an insurer offers to a policyholder in exchange of the annual insurance premiums collected from the policyholder. The claim amount enables the policyholder to bear the costs associated with medical treatment per the policy terms. Payments of claim may be applicable for both cashless and reimbursement claims.


Portability refers to the process of transferring a health policy from one insurance company to another. Portability allows policyholders to carry forward the accumulated benefits of their health insurance plan, such as their no-claim bonus, waiting period, etc., to their new insurance provider. Policyholders can use this option at least 45 days before but not earlier than 60 days from the policy renewal date.

Preventive Health Check-up

Preventive Health Check-up refers to medical examinations policyholders can undergo annually to detect any changes in their existing medical condition. The check-up enables them to diagnose illnesses in the nascent stage and take appropriate medical action. Under section 80D of the IT Act, policyholders can avail of an annual tax deduction of ?5000 on preventive health check-up costs. However, the overall deduction depends on the maximum tax exemption limit.

Pre-Existing Diseases

Pre-Existing Diseases are any illnesses prevalent in an individual prior to them purchasing a health insurance policy. The terms and conditions of coverage surrounding pre-existing disease insurance differ from a standalone health insurance plan. Insurers typically mention the pre-existing diseases for which they offer coverage. Policyholders can file claims for pre-existing diseases are riding out a waiting period of 24-48 months.

Policy Period/Period of Insurance

The Policy Period, also known as Period of Insurance, is the tenure during which a health insurance provider offers coverage for a valid and existing health insurance policy. It is the duration between the policy's commencement date and expiration date. A typical health insurance policy comes with a policy period or tenure of 1 year.


A Policy is a legal contract between an insurance company and an insurance buyer. It comprises all the necessary information a policyholder needs to know regarding their chosen insurance policy. The vital information mentioned in a policy document includes the detailed terms and conditions of insurance coverage, the inclusions and exclusions, information about insured parties' benefits, the sum insured amount, the claim process, etc.

Policy Schedule

The Policy Schedule is an essential component of an insurance policy. It comprises information pertaining to the insurance buyer and is different for every policyholder. The specific details included in a policy schedule include the name and contact details of the insured parties (which could be multiple persons in case of family floater plans), the sum insured amount, the policy period, benefits covered, etc.


A Policyholder is a person who is listed as the primary owner and beneficiary of an insurance policy. This person is eligible to make any changes or modifications to the policy. Policyholders can typically modify their existing policies at the time of renewal and are usually responsible for paying the insurance premiums for themselves and their dependents.

Personal Accident Cover

Personal Accident Cover is a fixed benefit plan under which policyholders receive a one-time payment of a predetermined sum. This pay-out is made to the policyholder in the event of an accident leading to their disability. If the accident leads to the policyholder's death, the insurer pays the fixed amount to their nominees. Personal accident cover does not cover the medical costs incurred by policyholders. It is a lump sum payment made only in the event of accidents impacting a policyholder's quality of life.