If you hear terms related to visitors health insurance policies and they sound like “Expelliarmus” you’ve come to the right post! Insurance terms are really not as bad as the Harry Potter spell that disarms opponents with a jet of light! Let’s look at some common terms that are related to checks that you will probably write.

The main involved in any insurance policy is the premium. Premiums refer to periodical amounts paid to purchase the insurance policy. Premiums vary according to the plan duration and age and health condition of the individual.

The next cost the insured might have to pay is the deductible. The deductible is the amount that the insured has to pay before the insurance provider begins to reimburse the costs. It can be per incident, per visit, per policy period or annual deductible. The lower the deductible, the higher the premium.

After paying the deductible, the insured might still have to bear a percentage of the costs, and this is called co-pay or co-insurance. This may be with a limit. For example, in a co-pay of 80/20 with a limit of $5,000, the insured will have to pay 20% of the expenses until the expenses reach $5,000. If the expenses cross $5,000, the insurance provider will bear 100% of the cost that is in excess of $5,000.