Understanding Health Insurance Plans


Health insurance is a kind of insurance which pays a portion or all of a person’s risk in case he or she incurs medical expenses. This type of insurance is obviously riskier than other forms of insurance, as with most people. This risk is transferred to the insurance company. There are two types of medical insurance. One plans cover only hospitalisation and major illness. The other covers almost every possible illness. Either one plans to have two different kinds of benefits. They are as follows:

The first is the deductible, which is the amount of money which has to be paid by the insured at the time of receiving the health insurance. This can either be paid from a monthly basis or in every thirty days. The second kind of health coverage is preventive care. This means that there is a monthly fee charged for visiting the doctor for regular check-ups and dental check-ups. If one has this in his health insurance policy, then at the time when his health insurance covers major illness, he will be charged the same amount of preventive care as well.

This is the reason why health insurance differs from one insurer to another. Different insurers provide different kinds of coverage. Each insurer uses different terms in describing the coverage. The main difference is expressed in the act. According to the act, a certain health insurance policy covers a “group” of at least three people, whereas another policy provides coverage for any single individual and at the same time group up to a maximum of twelve people.

The other important thing to be kept in mind when buying health insurance plans is the co-payment. The co-pay is the amount of money which has to be paid by the insured before the doctor’s visit. This amount varies from insurer to insurer. There are some insurance plans which cover the entire cost of the doctor’s visit, while there are some others which cover only a prescribed number of out-of-pocket expenses like any medication, checkup charges or even hospitalization fees.

So, in short, it is essential for an individual to do some research before choosing the best health insurance covers for him. First, he needs to calculate his annual out-of-pocket expenses on medications. Then he must assess whether he would be able to pay the deductible if ever his health insurance covers any major illness. It is advisable to consult with different insurance companies and obtain their estimates before choosing the best policy.