Health Insurance
Health insurance is broadly referred to the assurance where the insurance company pays the amount for the expenses to the bill for medical treatments of the insured party. Health insurance can be short term and disease specific, or it can be long term where continuous nursing process is mandatory. It can also cover disability managements.
Health insurances are provided by either government based insurance agencies or by the private insurance companies. The health insurance policy can be purchased by an individual depending upon his requirement or by a group to cover all their members in a comprehensive way. The insured party has to pay a premium according to the insurance terms and conditions. It can be monthly, quarterly half-yearly or annually. As an insured person, they are protected against unexpected and high cost of medical expenses.
At the beginning of the insurance, the insured party has to undergo a detailed medical check up so as to ensure his fitness to the policy. Once they are cleared, both the offering and the accepting party have to sign an agreement in relation to the insurance policy’s terms and conditions.
The idea of health insurance was started in 1694 by the Peter Chamberlain family. Initially the insured party was offered coverage arising out of petty medical expenses only. Later other branches of the insurance have come out like accident benefit, terminal care benefit, disability benefit, group insurance policy and others.
At present, two types of health insurance policies are in practice – the comprehensive and the scheduled health insurance. In the former, the insured party is reimbursed with percentage of the entire medical bill as per the terms of the policy (like 50%, 60% …100%). This includes all types of costs.Naturally the premium of these policies is higher. The scheduled health policies have formulated to meet the expense of day to day health care. Scheduled health insurance also takes care of the surgical and hospitalization benefits, but its vision is not like comprehensive policies. The rate of premium is lower in scheduled health policies.
In today’s world of high medical expenses, health insurance is a must for all. By paying a little amount at regular intervals, you are free to meet the unexpected heavy expenses for your medical bills.
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