If you are new to the world of medical insurance, it can sometimes seem like you are learning a foreign language.
However, it is important that you understand the key terms in order to make an informed decision about which policy you buy. Today, we are going to hone in one in particular, excesses. This article will tell you everything you need to know about excesses, and how they effect your medical insurance policy.
What is an excess in medical insurance?
When you set up your medical insurance policy, you will agree with your insurer an amount of money that you will pay if you make a claim. This figure is the excess.
Here is an example: If you needed medical attention that was going to cost 700 kina, and you had agreed an excess of 100 kina with your insurer, you would pay that amount and they would pay the remaining 600 kina.
An excess is the amount that you pay if you need to make a claim on your medical insurance.
With this definition in mind, here are some frequently asked questions that people often have about xcesses:
1. How do excesses relate to premiums?
In addition to excesses, the other key expense you need to think about when purchasing insurance is the cost of your premiums. These are the regular payments you make in order to maintain your coverage. Usually, if you agree to have higher excesses on your policy, meaning you would pay more in the event of a claim, you will be able to access lower premiums. The same is also true in reverse, if you pay more for the premiums, the excesses tend to be cheaper.
2. How often do I pay excesses?
It is crucial to understand that you do not pay excesses on a regular or recurring basis. The only time that you would need to pay this is if you have to make a claim because you need treatment. If you never claim on your health insurance policy, you never have to pay excesses.
3. How much do excesses cost?
The answer here will depend on what you agree on with your insurer, and can vary significantly. This is why it is important not to get lured into a plan by seemingly cheap premiums, as you will not make real savings if you have to pay large amounts each time you need to claim on your policy. It is always worth discussing the excesses before you buy so that you are clear on what your commitments are, and to check what options you have for adjusting them.
4. Will I pay an excess for children on my policy?
Again, this is something that may vary between insurers. If you have a family policy that covers you, your spouse and your children, generally you will pay excesses for each adult included on the policy but not for your children.
For more information on excesses, or how medical insurance policies work, get in touch with the team at Trans Pacific Assurance Limited (TPAL). We have been helping people in PNG find the right cover for years, and we would be more than happy to answer any questions you may have.