Health insurance, otherwise known as health care insurance, is basically an insurance which covers a portion or the total risk of an individual incurring healthcare expenses, spreading that risk over a number of persons. It is designed to protect against sudden health emergencies, like accidents, acute diseases and life threatening diseases. It aims at providing all the facilities of healthcare, 24 hours a day, seven days a week. The policyholder or the insured person pays a premium every month for the health insurance coverage.
A number of health insurance plans are available in the market. One can choose from the different health insurance plans that are designed to meet the diverse needs and budgets of their customers. It comprises of deductibles, Coinsurance, maximum out-of-pocket maximums and many other factors. The health insurance plans generally come with a health plan fee, which is charged by the insurer on the behalf of the policy holder or the customer.
Some health insurance plans include a premium payment for the hospitals and doctors. However, some companies also offer free hospitals and doctors in their plans, which are designed in such a way so that they cover only a particular number of out-of-pocket expenses. Free doctor visits are one of the most important features of most health insurance policies. There are plans which provide a sum insured amount. This sum insured is usually the maximum sum an individual is liable to pay out-of-pocket in case of unexpected hospitalisation expenses.
Some health insurance covers a wide range of services other than the mentioned three mentioned above. However, most of these plans do not offer any health benefits essential to the general well-being of an individual. Medical care, consultations with doctors and emergency care are the three basic services offered in a health insurance plan. However, other plans offer additional benefits, depending on the type of plan. The total cost of a health insurance plan is dependent upon the covered services provided. The insured individual pays a lump sum insured amount at the start of every policy. Other expenses incurred by the insured through the course of life are borne by the insurer. Such expenses include annual deductibles, copays, coinsurance, and premiums.
Each individual has unique situations. In fact, health insurance coverage can be tailored to suit any situation. It is best to consult a qualified health insurance agent or representative to help you understand your needs. This is because there can be many aspects to health insurance coverage. For instance, there can be a difference between catastrophic and income catastrophic insurance coverage.