Why Having A Good Health Insurance Is A Must Have?

The health insurance system provides protection for the insured against the uncertainty of incurring massive medical expenditures during medical emergencies in life.

Developing a routine finance framework in form of regular monthly or quarterly payments or payroll taxes ensures the availability of finances to avail the proposed health care benefits as specified in the insurance policy agreements.

The administration of these benefits is done by central organizations like government agencies, not-for-profit groups or by private businesses.



Types Of Plan and Benefits Offered

Health Insurance policy contracts are renewable and/or lifelong agreements between insurance providers and individuals and/or their respective dependant family members.

Certain country-specific national insurance plans have become mandatory for all the citizens and residents based in these countries. 

The types of benefits insured for and the health care expenditures incurred to achieve the same, are stated in form of written documents. The policies come in form of either comprehensive or scheduled plans.

The more traditional comprehensive health insurance policy plans offer a certain percentage of hospital and physician expenses after a co-pay or deductible as paid by the insured.

The potential benefits offered by these plans come in a wide range of $1,000,000 to $5,000,000 and thus require a high premium.

Scheduled policy plans, also known as mini-med or association plans, offer daily health care expenses like purchase of prescription drugs. These plans might also offer hospitalization benefits but these are covered in limits.

Catastrophic events and treatment expenses of life-threatening sickness are not covered in scheduled plans. Since these plans take care of limited benefits, the cost is much less. The annual benefit maxima vary in the range of $1,000 to $25,000.

Types Of Obligations For The Insured

Many of the health insurance plans lays down a set of requisites to be met by the insured individual. Premium is the charge which is required to be paid for purchasing health policy and is either paid by the policy-holder or the individual’s sponsor.

Deductibles are paid at regular intervals like annually by the insured before he can receive his benefits from the insurer.

Co-payment is paid by the insured every time a particular service is availed and is later reimbursed by the insurer.

Coinsurance has to be paid by the insured over and above the benefits received from his insurance policy for availing a particular health care service. Exclusions refer to the payments made by the insured which are not covered by his coverage policy.

Capitation is the amount which is paid by the insurer to the hospital or physician for their service provision. Coverage limits define the limits of benefits offered by a certain policy calculated in dollar amounts.

Out-of-pocket maxima are the limitations on payments made by the insured out of his own pocket for securing health care services.

Group Health Insurance: Is It Beneficial?

Group insurance or a business health insurance is generally offered by companies or employers to their employees for the sake of benefits it offers.

Not only the employer but also the employees can get wide range of benefits offered through these health insurance plans. If your company is offering these types of plans at an affordable price, it is best to take the maximum advantage out of it.

The best benefit of taking group insurance plan is it's affordable. When you are taking a business health insurance part of the premium is paid by the employer so that you do not have to worry about the heavy premium cost.

Group insurance can also be taken by families who want to get the health insurance of all their family members. As you are taking more than one insurance plan, the premium you share is very less.

It has been seen that group insurance premium for large families is often same as for small families. Hence if you are taking a group insurance for your large family you can save a significant amount of money each year on your premiums.