What is copayment?

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Copayment is that part of the claim which the policyholder will bear if there is a claim. This is advantageous in terms of lowering the premium. The premium discount depends on the copayment ratio between the insurer and insured. For healthy policyholders, this can be a benefit since the chances of hospitalization are lower than someone with pre-existing illnesses. This does not affect the sum insured.