Co-Pay Policies: Low Premium Lure Hides High Out-of-Pocket Costs

• Co-pay requires policyholders to pay a percentage of treatment costs, despite low premiums.
• While attractive for lower premiums, it can lead to significant out-of-pocket expenses during illness.
• Insurers include co-pay to reduce risk, prevent unnecessary treatment, and offer cheaper policies.
• Common in senior citizen, top-up policies, or for treatment in large cities/non-network hospitals.
• Policyholders can often remove co-pay by paying an additional premium for full coverage.

Why It Matters: Don't just chase low premiums; understand co-pay clauses to avoid financial shock during treatment.