Health insurance is a kind of insurance which covers a particular portion or all of an individual’s risk in the event that he or she incurs medical expenses. Like other forms of insurance, there is great risk among most people. In exchange for that risk, health insurance pays the medical expense that would have otherwise been paid by the individual. This type of health insurance has become more popular over time. Many companies offer insurance plans for different age groups, health conditions, genders, and even for specific pre-existing medical conditions. It is recommended to compare the different health insurance plans offered by different companies before deciding on which one will be best for you.
A lot of people consider health insurance as a good option because it provides coverage for major medical bills every year. However, not everyone considers deductible. What are deductible? Basically, this means the amount that needs to be paid first before your health insurance kicks in. On the average, the higher the deductible, the lower the monthly premium rate you will pay for your health insurance plan.
Some people consider health insurance as a tool to protect their families from major financial difficulties in case they become ill or become seriously injured. Coverage for illnesses such as cancer, Parkinson’s disease, Alzheimer’s disease, diabetes, heart attack, and serious accidents are often included in health insurance plans. It is important to read the fine print of health insurance contracts to ensure that you understand what your policy covers.
There are two ways to pay for a health insurance plan. One way is through a premium, and the other is through a deductible. Deductible is what the insured pays from the health insurance company before receiving any medical treatment. For instance, if you do not have $1500 dollars (the minimum amount required in most states) spare to pay for hospitalization, you will have to pay it yourself.
The cost of medical treatment can go up with time. In addition, the expenses incurred by the doctor and hospital can go up, too. In this case, both the hospitalization fee and the doctor’s fees will be added to your monthly premium payment. There is also a chance that the hospitalization fee may not be covered at all. Health insurance plans can either include or exclude coverage for hospitalized expenses incurred abroad. Before buying health insurance plans, you should check what kinds of hospitalization expenses are covered.
Some health insurance plans cover your total costs, which means that the insurer will take care of the costs of your hospitalization and doctor’s bills. In exchange, you will be responsible for the monthly premium payment. You should try to get a health insurance plan that covers your total expenses so that you won’t have to worry about paying a lot of money. Some insurers only cover a part of your medical expenses and require you to pay the remaining part in addition to your monthly premiums. Before signing up for health insurance plans, make sure you understand clearly the terms and conditions.
Written by Andrew West