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3 Types of Insurance Payments

3 Types of Insurance Payments

Credit [Photo by Towfiqu barbhuiya on Unsplash ]

  • Updated on 15 Aug 2023
  • Redaksi Liveaman
  • 3 Mins

Insurance payments are important in the insurance process which aims to protect our finances and well-being from unexpected risks, so when we buy an insurance policy, let’s take a look at the information about the 3 types of insurance payments that you need to know.

Also read Performance Management: Optimizing Employee Productivity and Well-being

Health Insurance Fee

You need to know first, what is the cost of health insurance. In health insurance, the cost of insurance is the amount that must be paid by the policyholder to obtain health protection. These costs can vary depending on the type of health insurance chosen and the coverage of benefits provided.

Health insurance prices are determined by a variety of factors, including age, gender, health conditions, and desired coverage of benefits. This price can differ between insurance companies and can also be affected by external factors such as inflation.

Types of Insurance Premium Payments Based on Payment Systems

When an insurance claim occurs, payment of a claim is when the insurance company provides funds to the policyholder or party entitled to receive benefits. The claim payment process can be done in 3 ways, namely with a cashless system, reimbursement, and cash plan. But in general, insurance payment systems that are often used are cashless and reimbursed. Policyholders must understand these two systems to determine the payment method that suits their needs.

Types of Insurance Premium Payment Based on Payment Period

The insurance premium is the amount that the policyholder must pay to the insurance company to maintain their policy. Based on the payment period, there are several types of insurance premium payments, such as monthly, annual, or longer-term payments.

Cashless Insurance

Cashless is a payment system where policyholders can receive medical treatment at a hospital or health facility linked to an insurance company without having to pay directly. Policyholders only need to show their insurance card as identification.

In other words, this is a condition where payments are made without using cash or in the context of insurance, this payment system refers to a payment system where policyholders can receive health services without having to pay directly.

Advantages or Benefits of Cashless

Some of the advantages of cashless are the ease of use, no need to spend cash, fast claim processing, and easy access to health services; all in all, a very convenience method.

Disadvantages of Cashless

The disadvantages of cashless include the limited network of hospitals or health facilities connected to insurance companies, restrictions on choosing health services, and the possibility of additional costs that are not covered by insurance.

Insurance Reimbursement

Reimbursement is the act of obtaining reimbursement of expenses that have been incurred. In the context of insurance, reimbursement refers to the process of submitting a claim and getting reimbursed for costs incurred by the policyholder. So insurance reimbursement is a payment system in which the policyholder must first pay for medical treatment costs, and then submit a claim to the insurance company to get reimbursement for the expenses that have been incurred.

Advantages or Benefits of Reimbursement

Some of the advantages of reimbursement are a wider selection of health services, the ability to get medical care in places not connected to an insurance company, and the possibility of higher reimbursement.

Disadvantages of Reimbursement

Some of the disadvantages of reimbursement include financial limitations when paying for medical treatment in advance, a claim process that is more complicated and time consuming, and the possibility of lower reimbursement compared to the amount already spent.

Insurance Cash Plan

Cashplan is a type of insurance that provides fixed cash payments every time the policyholder faces a situation specified in their insurance policy. A cash plan is often used to help protect policyholders from additional costs arising from illness or injury.

Advantages or Benefits of Cash Plan

The benefits of a cash plan include immediate cash payments, the freedom to use funds as needed, and protection against additional costs that are not covered by the main health insurance policy.

Disadvantages of Cash Plan

The disadvantages of cash plans are premiums that may be higher than the main health insurance policies, limitations in coverage of benefits, and special conditions that must be met to qualify for cash payments.

In conclusion, an understanding of the types of insurance payments, such as cashless, reimbursement, and cash plans, is very important in choosing a method that suits the needs of employees or policyholders, especially the importance of employee benefits. The advantages and disadvantages of each payment system need to be carefully considered. As an employee, taking advantage of employee insurance and group health insurance can provide important protection for your finances and personal and family well-being.

Also read Cost Efficiency of Self Insurance and ASO

Aman is a digital platform for employee benefits, where you can choose, buy, and manage health insurance in the form of benefits registration, claims monitoring, and analytical reporting.

There are various examples of health insurance and Aman service products that you can use, for example AmanCheck, to anticipate the prevention of various disease and diagnostic risks.

Get more complete information by visiting the help page on our website or consult directly via WhatsApp.

Come on, take care of your health and your family together with Aman!

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