Health insurance: Co-payment vs deductible explained. Which one should you choose?

Co-payment is a fixed percentage of the claim amount the policyholder must pay; for example, a 20% co-payment on a ₹50,000 bill means paying ₹10,000.

A deductible is a fixed amount paid before the insurer covers claims; for example, a ₹25,000 deductible on a ₹10 lakh bill means paying the first ₹25,000.

Many policies have an annual aggregate deductible, so the deductible is paid only once per policy year, and subsequent claims are covered per policy terms.

Both co-payment and deductible can lower insurance premiums, but they affect out-of-pocket costs differently, and policy terms vary by insurer.