Personal Finance Basics | Finance basics

Most of us, especially in our 20s, either don’t think about health insurance…
Or buy one without really knowing what we’re signing up for.

So here’s your quick guide👇

1️⃣ COPE Clause (Co-payment Clause)
It means you share a part of the hospital bill.
Example: If your co-pay is 10%, and the bill is ₹1 lakh — you’ll pay ₹10,000 and the insurer pays ₹90,000.
Many skip reading this and get shocked later.

2️⃣ Pre-Existing Disease Clause
If you already have diabetes, asthma, thyroid, etc. — it’s called a pre-existing condition.
Most policies don’t cover these right away. They cover it only after a certain number of years (say 2–4 years).

3️⃣ Waiting Period
Every policy has a time limit before some benefits kick in.
It can range from 30 days for basic illnesses to 2–4 years for specific conditions.
So don’t expect full coverage immediately after you buy a plan.

4️⃣ Sub-Limits
This means a cap on specific expenses — like room rent or doctor fees.
Even if your total coverage is ₹5 lakh, your room rent might be capped at ₹5,000/day.
Go for policies with no sub-limits if possible.

5️⃣ Exclusions
Every policy excludes certain treatments or situations — like cosmetic surgeries, dental care, or injuries from adventure sports.
Read this list carefully, coz this is what your policy won’t cover.

6️⃣ Pre & Post Hospitalization Costs
Good policies cover your medical expenses before and after the hospital stay too usually 30 days before and 60–90 days after.
Check how many days your policy offers — it makes a big difference.

7️⃣ Daycare Treatments
Not all treatments require 24-hour admission.
Modern surgeries like cataract, dialysis, or chemotherapy are done in a few hours.
Make sure your plan covers daycare procedures.

8️⃣ No Claim Bonus (NCB)
If you don’t make a claim in a year, your sum insured increases (for free!) next year.
Example: ₹5 lakh → ₹6 lakh.
Some insurers offer up to 50–100% bonus — a hidden gem many miss.

💡 Remember:
Health insurance isn’t just about emergencies.
It’s about knowing what exactly you’re protected from… and what you’re not.