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 the coinsurance.

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 (PPOs).

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