It is true when we say health is wealth. You can always amass wealth at any point in your lifetime but if health deteriorates once, then you have lost the battle against time. We need to take care of our health in order to be there for our family and friends. But we never know what to expect in the future. Future is very unpredictable and you cannot always expect it to be merciful on you. Anytime the tide can change and we could be at the receiving end of its rage therefore it is always better to take precaution and make sure that we and our families are well protected in the future. That is to say that our lives are insured.
Health insurance is therefore something that every member in our family needs. It is an insurance policy that pays for our medical needs and expenditure. It can include long term disability and other types of custodial care. Insurance may be made available through a state run program or by private companies. Certain companies include it in their company policy to cover all its employees. The individuals under the policy have to pay a certain amount of money known as the premium amount that will assist in future healthcare needs. Based on the predictable expense that may have to be covered by the individual, the premium amount is calculated.
The concept of insurance developed as early as the late 19th century and conceptualized eventually through time till the present date. Nowadays various policies are available to us that cover different needs. Just like a normal insurance policy, health insurance policy can be treated as an agreement between the insurance company and the individual. The policy has stipulated time duration and it can be renewed on a monthly or a yearly basis. A premium is to be paid by the individual to the insurance company.
The insurance policy also has a certain share amount known as the deductible, which the individual has to pay from his own pocket before the company steps in to pay the rest of the amount. Similarly there is the concept of coinsurance wherein the insured person may pay a certain percentage of the entire expense. Coverage limits exist which makes sure that the insurance covers only a part of the expenses.
Health insurances are similar to health plans but with a slight change. These plans include pre aid services such as pre paid dental services but they extend only to a certain limit. Also there is the comprehensive health insurance that allows the policy to pay for certain amount of the expenses after the individual has paid his dues. These plans are generally higher priced than the others. A scheduled policy on the other hand covers the day to day visit to the doctor or getting the prescribed drug from the drug store. The negative point of a scheduled plan is that it does not cover accidental cases and are thus priced lower than the comprehensive plan.