Before we begin to talk about health insurance and the likes, let’s briefly go over the concept of insurance. A form of ‘risk management’, Insurance is the transfer of the risk of a loss, from one person to another, in exchange for a certain amount (premium). In other words it is a kind of guarantee to combat any kind of losses in regards to health, property etc.
There are two parties to an insurance contract. The company who sells the insurance is the insurer; and the insured is a person who buys the insurance from insurer at a certain amount. The rate at which the insurance is provided decides the premium charge.
There are various companies over the world that protect your life and property from any unforeseen damages by the aid of an insurance policy. Health insurance is primarily an insurance policy that covers any health related expenses of an insured person. Health insurance also helps to cover any ‘disability’ or ‘long term nursing needs’ that may be government sponsored, purchased in groups, individually or sponsored by a company. In every case, the insured groups pay premiums to help protect themselves from any unforeseen medical related expenses.
In regards to health insurance, unhealthy people anticipating large medical bills can avail the benefits of health insurance coverage. On the other hand people who are relatively healthy and spend about $200 on yearly visits to their doctor may not feel the need of a health insurance plan in which they need to make payments of $40 a month.
In health insurance contracts, the kind and amount of health care costs are pre determined by the insurance company and the customer. These contracts are renewable either monthly or annually. Some health insurance policies cover for health care only up to a certain amount. Any extra charges that may arise in excess of the health plan’s maximum payment may have to be paid by the insured person. On the other hand, some insurance schemes have annual or lifetime coverage. In these cases, the insurance plan will stop payment when the benefit maximum is reached, the remaining costs to be paid by the policy holder.
Also check: http://www.healthinsurance.ind.in/short-term-health-insurance.php
