Health insurance covers two kinds – Indemnity programs and guaranteed benefit plans. The indemnity plans, meanwhile, are more traditional health insurances that cover only hospitalization expenses from the amount assured. Guaranteed benefit plans, meanwhile, give an individual a fixed amount based on income. Each type has its own benefits and drawbacks.
Health insurance plans that offer the most comprehensive coverage at the lowest cost are Indemnity programs. This kind of coverage must be purchased from an authorized health insurance company and must be purchased directly from them or through an agent. A health insurance company will be the one to decide who is eligible for their program and for what condition they must pay a premium. Indemnity coverage will not cover pre-existing conditions.
Medical expense coverage is another type of health insurance plans. This coverage is required by law. Basically, all health insurance plans will provide this coverage. It can provide coverage for emergency and hospital expenses as well as for dental, surgical and other orthopedic expenses.
One of the primary advantages of having a health insurance plan is protection against financial losses due to unexpected illnesses or accidents. When an individual encounters a medical emergency or suffers from a chronic disease that requires expensive treatment in a hospital, he/she must first seek medical assistance. If left untreated, these expenses can become overwhelming and be very difficult to cope with. In cases wherein the person has no health insurance coverage, the expenses can be overwhelming and the result could be a financial loss.
HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations) are two different schemes offered by health insurance companies. These two schemes are very popular in the United States and are available in all states. In general, HMOs are managed by a network of hospitals and doctors who agree to treat individuals at a reduced rate in exchange for a monthly fee. PPOs, on the other hand, allow more freedom in choosing a doctor or a hospital. Both health insurance plans restrict the use of such services that are covered by the health insurance cover scheme, including spas, aestheticians, surgeons and other services not considered medically necessary.
A health cover is an important factor in providing financial security to your family. Your health may be a priority and yet you cannot pay for high medical costs. In this case, having a health insurance plan that covers sudden illness and injuries will help you lessen your financial burden when the time comes. You need to carefully assess the health needs of your family before buying a health cover. For example, if you have a family floater, you may want to get a health cover that covers health care for the entire family, particularly if you have more than one child.
There are health plans may choose low deductible plans that are affordable and yet you may need to pay a higher premium in case of emergencies. Health insurance companies will also vary in their coverage options and in their rate of premium payment. For this reason, it is necessary that you do thorough research before you buy a health plan.
Most health insurance cover packages will not cover the cost of routine preventive care and treatment such as cholesterol control, regular doctor visits, maternity expenses, etc. However, most companies will offer a certain sum assured by the policy, which means they will cover the critical illness benefit if you become seriously ill for an extended period of time. The critical illness sum assured is the amount that the health insurance cover will pay out once you become seriously ill. If you decide to cancel your health insurance cover, the critical illness coverage will cease. For people with chronic illness, however, the health insurance cover will reimburse them the critical illness sum assured for a specific period of time.