What is Health insurance?
Health insurance is one of the components
of a sound financial plan. It provides financial security for your family
by providing financial resources for health expenses in times of life's
uncertainties. Most people, especially with dependents, need health
insurance. To determine how much health insurance you need, start by
considering the typical medical expenses you and your family incur (i.e.,
doctor visits, medical tests, prescriptions). Don't forget to plan for
the unexpected. To evaluate your specific needs, you should contact
a professional health insurance agent.
Why health insurance
is a must?
Health insurance has become necessity today because it plays
a major role in health care. This is because one never knows when illnesses
may strike. And in such cases hospitalisation and medication expenses
can be unaffordable. Health insurance can prove to be a source of support
by taking care of the financial burden your family may have to go through.
It is especially worse when the patient needs specialised care. Health
insurance takes care of you in such circumstances. It will help you
tackle such situations with ease by providing you with timely and adequate
medical care. The financial burden of footing huge medical bills is
taken care of by health insurance. Besides if the accident causes life
long disability to the patient, the earning member of the family, the
insurance company will come to the rescue.
With the insurance sector being thrown open, healthcare facilities can
be provided to one and all at subsidised rates. Affordable health covers,
which will also ensure faster access to medical facilities at the same
time doing away with the inordinate delays, bureaucracy etc will pave
the way for speedy recovery and many a life can be saved.
Insurers will soon tie
up with hospitals to provide the required services and accordingly make
it easier for the common man. Besides with several insurers providing
such facilities it will bring to the fore healthy competition, improved
services - all to benefit the common man.
Mainly there are
two types of insurance under this:
With an indemnity plan, you can use any medical provider
(such as a doctor and hospital). You, or they, send the bill to the
insurance company, which pays part of the cost. Usually you have a deductible,
which is the amount of the covered expenses you must pay each year before
the insurer starts to reimburse you . Once you meet the deductible,
most indemnity plans pay a percentage of what they consider the usual
and customary charge for covered services. The insurer generally pays
80 percent of the usual and customary costs and you pay the other 20
percent, which is known as coinsurance. Policies typically have an out-of-pocket
maximum. This means that once your covered expenses reach a certain
amount in a given calendar year, the usual and customary fee for covered
benefits will be paid in full by the insurer, and you no longer pay
Managed care plans generally provide comprehensive
health services to their members and offer financial incentives for
patients to use the providers who belong to the plan. There are three
major types of managed care plans: health maintenance organizations
(HMOs), point-of-service (POS) plans, and preferred provider organizations