An Overview of Health Insurance
You may be highly conscious about your health and may be taking optimal care of this precious possession of yours but like accidents are not planned, they just occur so is the case with your health. No matter, how safely you are driving but you never know what turn your fate takes at the next turn! This is the simple concept that explains the need for health insurance. We are living in an era where we are prone to health hazards at every second step. Science and technology has made food cultivation and processing an ease but at the same time harmful chemicals are also there as a by-product. Then there comes the great issues of pollution, ozone depletion and the fast-paced life that not only affects our mental but also physical health to great extent as both are interlinked after all! A health insurance is the easiest way one can hedge these risks and add extra years to one’s life.
Health insurance policies vary from company to company however; the right insurance policy is one that covers all the important aspects of health care you want at price you can afford. Generally it is thought that a health insurance policy is too costly to be afforded by a common person but it is not true. Just imagine the cost of regular medical check-ups, medicine bills, diagnostic charges, hospital bills and physician’s fee and then compare it to the premium you pay for the health insurance and you will immediately realize that benefits of health insurance outnumber its cost! How to choose the right health insurance policy is a matter of various factors, let us have a look at each of these:
Term of Insurance: A health insurance policy can be for a short term or a long term. You may want to mitigate the health risks for sometime till you get eligible for the health insurance by your company or if you soon plan to move to some other country. Depending upon the term vary the benefits you receive as well as the cost you pay for these.
Basic vs. Comprehensive: As the name explains a basic health insurance is one that provides cover against basic health issues like major accident or illness. It comes with a low premium as it does not cover other health related issues. A comprehensive health insurance policy on the other hand covers all the preventive as well as defensive care against major and minor accidents and illness and a high premium is justified for such a comprehensive health plan.
Individual vs. Family: There are health insurance policies that are devised for individuals and there are others that are designed for family. Still there are others that are made for groups. Premium varies as per number of individuals and the areas covered under specific health insurance policy. It is always recommended to opt for the option of group insurance if your employer provides health insurance benefits as it will reduce the cost of insurance to great extent and will save you the hassle of paper and legwork. Another important thing in this regard is to buy the health insurance at an early age as cost of health insurance is directly proportional to the age for the simple reason that health deteriorates as the aging process advances. Even if you do not claim for the insurance it will help you by getting special discounts and bonuses that vary from one insurance company to the other.
Indemnity vs. Managed Care: Broadly speaking there are two types of insurance plans; indemnity health care plans and managed care health plans. Indemnity plans are usually costly but the choice of physician is yours and you provide the bill to the insurance company after you have paid it. Managed care, on the other hand is one that though is cheap yet restricts the options for hospital and physician choice for they are defined by the health insurance company.
Insurance Premium: Premium is defined as the payment to the insurance company for the benefits you receive when you claim insurance. A number of factors are considered while deciding about the premium; age, coverage, numbers of individuals (in case of family or group insurance), health condition and income being the dominant ones!
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