What is health insurance?
Simply put, health insurance is
protection against medical costs. A health insurance policy
is a contract between an insurer and an individual or group,
in which the insurer agrees to provide specified health
insurance at an agreed-upon price (the premium). Depending
on your policy, your premium may be payable either in a lump
sum or in installments. Health insurance usually provides
either direct payment or reimbursement for expenses
associated with illnesses and injuries. If your employer does not offer a health insurance
plan, you may wish to purchase health insurance on your own.
Why do you need it?
Let's face it--health insurance is
a necessity in today's world. The costs of medical care and
treatment have soared to new heights in recent years and are
expected to rise even further in the years to come. Think
for a moment about the enormous medical costs you would
incur if you suffered a major injury tomorrow or were
suddenly stricken with a life-threatening illness. Uninsured
people live with such risk every day of their lives; health
insurance can shield you from that risk. Even if you're
healthy today and have never had any major problems in the
past, you simply can't predict the future.
In addition to medical
emergencies, routine conditions requiring visits to a
physician happen all the time.
This is especially true if you have children. Ear
infections, rashes, and high fevers are commonplace with
infants and children; numerous trips to the doctor can be
pretty expensive without health insurance.
What do you need to know?
You should know where to get
health insurance, and understand the various types of
private health insurance that are available. There are some
important differences between indemnity plans, HMOs, PPOs,
and POS plans worthy of understanding.
You should also make every
effort to understand your
own health insurance policy, and become familiar with common
health insurance provisions, including limitations,
exclusions, and riders. It's important to know what your
policy covers, and what you'll have to pay for in
When comparing health insurance
policies, you should strive to balance coverage
against cost. While price is an important consideration,
there are also other factors that may influence your
decision when it come to choosing a health insurance plan.
taxation of health insurance benefits and premiums is also
an important issue,
especially if you're self-employed.
Being aware of
your COBRA rights, in the event that you lose your health
insurance coverage due to a change in employment or other
factors is also worth investigating.
When to get it
If you don't have health insurance
right now, you should seriously consider purchasing it as
soon as possible. No one can predict the future--you don't
know when you might suffer an accident or become seriously
ill. Health insurance can help to protect you against
| Understanding The Basics |
Types Of Insurance
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Please Note: The
information contained in this Web site is provided solely as a source of
general information and resource. It is a not a statement of
contract and coverage may not apply in all areas or circumstances. For a complete
description of coverages, always read the insurance policy, including