Things to Know About Health Insurance

health insuranceHealth insurance means that to pay amount today in installments to avoid lump sump expenses on medical treatment of different diseases which are cure on high rates. Health insurance is provided by government sector, private sector or non profit organizations. The amount of health insurance differ from plan to plan and agreement among the parties. You need to have proper health insurance agreement to avoid problem in future raised due to bad health. The health insurance makes sure that in the time of need you don’t have to ask help from others or government when it matters most such as saving of life.

Types of health insurance:

  • Premium
  • Deductible
  • Co-payment
  • Co-insurance
  • Exclusions
  • Coverage limit
  • Out of pocket maxima etc.

You need to know about all these types of health insurance so that you can choose the best available option according to your plans. The premium means you have to pay some lump sump amount in advance and then installments which may be monthly, bimonthly, quarterly, semi annually, and yearly according to your feasibility. The premium type covers all your expenses on medical requirement and in case of completion pay you your amount back with significant rate of interest.

Deductible means that these insurance is provided to you by your employer and they deduct specific amount from your salary and pay you in lumps sump in the time of need.

Co-payment means that your employer contribute the same amount with you in your account which is provided to you when needed or at the time retirement.

Co-insurance means to have single insurance for partners who are may be in any relation or without any relation and their share vary with the amount paid by them. On completion of this insurance if one party died the other beneficiary will also have his partner’s share as well.

Exclusions means type of health insurance in which few diseases are not covered with agreement and you have to bear all expenses by yourself on those diseases.

Coverage limits mean the cost of medication is covered to the limit which agreed in agreement and company will not provide any claim above that coverage limit.

Out of pocket maxima means that until or unless the insured person has money he will not be provided any facility by the insurance company and once he get default the company will bear all expenses without any limit.

Now you have to decide depending on your need or thinking that which type of health insurance is suitable for you but as long as your employer is providing you health insurance you do not need to have any insurance. You can have extra insurance as well in that case if you want to cash in one of your insurance as retirement plan. Be careful in choosing your health insurance as there is no substitute for health and life.

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