Health Insurance
Health Insurance relates to getting insured by paying a premium based on the age of the person, state of present health status and value of the sum assured. If one suffers a disease during the assured period and requires hospitalization for treatment of the ailment, the Insurance Company undertakes to offer cash less service for getting the person treated at approved Hospitals or Nursing Homes fulfilling the conditions of the Insurance Company to hospitalize the person and offer to the required treatment.
Depending on the terms of the Policy the benefits are available to the person, when ever the event of disease takes place. The admitting Hospital offers cash less treatment and completes all the documentation. The Policy document issued by the Insurance Company also mentions certain diseases, which are excluded from the treatment or charges additional premium to cover them. If the person is already suffering from a disease the pre-existing disease is also excluded.
Health Insurance can be taken individually or it is also provided in a group by the employer under welfare schemes of the organization. Health insurance offers protection from unexpected expenses of hospitalization in case of event of suffering from a disease.
Health Insurance policy is contract between Insurance Company and the person taking the Insurance policy. The contract requires renewal at an annual or monthly interval as specified in the policy. At the time of receiving the premium amount a Health Insurance Cover Note is issued, followed by a regular Policy mentioning all the terms and bindings on the Insurance Company. Following is some of standard terminology used in health insurance policy.
- Premium: It is the amount, which the policy-holder or his employer pays to the Insurance Company to provide the benefits to the beneficiary covered under Health Travel Insurance Options.
- Deductible: It is the amount, which the insured person spends on his treatment from his pocket. This is the amount which the insured person has agreed to incur per year after, which the insurance company pays all other treatment expenses as per the terms of the policy.
- Copayment: Is an amount, which the insured person pays to the doctor for his examination, based on which the doctor writes the prescription. The Insurance Company pays for the treatment cost only.
- Coinsurance: Here the insured undertakes to bear a fixed percentage of treatment cost, whereas the balance amount is paid by the insurance company. In case there is upper limit ceiling of coinsurance, the beneficiary gets the benefit up to ceiling amount. Rest of the treatment expenses are again to be borne by the beneficiary.
- Exclusions: All the disease are not covered in the policy document some of them are excluded. If the beneficiary has to get the treatment of excluded diseases, he has to do at his own cost.
- Coverage limits: Few health insurance policies are liable only to pay for health care with a stipulation of certain amount at the maximum. The insured beneficiary is required to pay for additional treatment cost.
Out-of-pocket maximums: There is a maximum amount out of pocket expenses after this all the treatment costs are borne by the Insurance Company.
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May 11th, 2010 at 6:49 pm
I always make sure that my family gets Health Insurance from very reputable companies. health insurance is very important these days..*~