There are 4 types of copayment clauses in health insurance -
Network Hospital-based copayment: Some insurers ask policyholders for copayment if they have approached a non-network healthcare facility.
Illness-based copayment: In cases of policyholders with chronic ailments or pre-existing medical conditions, with a higher risk of payout, health insurers at times request a copayment % that would mitigate the financial burden of the insurer.
Location-based copayment: When policyholders are located in Tier 1 cities, the cost of healthcare services is high. This means one of two things - either the health insurer demands a higher premium or requests you to pay a copayment resulting in a mitigated premium amount.
Age-based copayment: The older a person gets, the more susceptible he/she gets towards health complications that require expensive treatments for prolonged periods. Hence, the older a policyholder, the premium gets spiked. As an alternative, policyholders can also opt for copayments that substantially reduce their premiums.