Health insurance is the type of insurance which covers the whole or just a part of the risk to a person who is incurring the medical expenses IFPASit spreads the risk over a large number of persons. The benefits will be offered by a central organization like the government or a private business. This way health insurance could be defined as payments of benefits due to sickness or someone injured include are the insurance for loses from accidents, medical expenses accidents, and disability.
You should understand that this health policy is like a contract between the insurance provider in an insurance company or government with you as the individual, basically the contract has to be renewable maybe annually or monthly. You may decide to have a long run contract in cases of private insurance or when it’s compulsory for all citizens in case of private travel insurance This type of contract is specified in writing as it should show the amount that has been paid for and the type of the insurance being covered. The individual who has been insured may decide to take the following forms
Premium-this is the amount the policyholder that could be your employer or the one who has sponsored you will pay to the health plan so as to be able to buy the health coverage
Deductible-the amount of money you have to pay from your own pocket before the insurance company comes in and pays its share. Sometimes it might you several visits to the medical Centre before the insurer chips in to pay its share and at all this time you are spending money from your pockets, which is not deductible from the insurance cover.
Copayment-this is the amount of money you have to pay coming from your pockets before the insurer decides to make a pay for a particular visit or service. This must be paid anytime a certain service has been obtained
Coinsurance-instead of paying a fixed amount of money upfront the coinsurance is also the amount you as the insured person has to pay. For an example you as the member may hay have to pay 20% of the cost of a surgery over and above the copayment, while the insurance company pays the other 80%.if there happens to be an upper limit on coinsurance the company will add but very little depending on the actual cost.
Exclusions– in this type of coverage, the one insured is expected to pay the full cost for the services which are not covered out of their pockets
Coverage limits-you will find that some health insurance will pay the amount up to a certain reach and you are expected to pay the rest from your pockects.
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