Health Insurance Plans

Health Insurance Plans

Sep 13, 2010

What is Health Insurance?

Health insurance is a type of insurances that primarily covers medical expenses for people that purchase a contract with an insurer or receive insurance through an employer. This contract generally includes a specific set of medical expenses that will be covered in direct accordance with how much the policy holder desired to pay for the insurance. This insurance also includes disability or long term nursing and custodial care needs for those that are incapacitated long term due to an illness or other negative medical malady. There are some programs in which health insurance news may be received through a governmental policy that is granted in response to the inability to purchase health insurance for some people.

Basically speaking, a health insurance policy is a contract that is structured and agreed upon by the insurer and the customer or policy holder. The contract makes a binding agreement between the two parties in which the policy holder agrees to pay a certain amount of money per year in exchange for the company’s coverage of certain medical expenses. This contract may be pay for in small monthly increments or in larger, lump sums. The obligation of the policy holder takes two major forms; payment of a premium to hold the insurance and payment of a deductible which is the amount that must be paid up front to secure the insurance. As long as these two payment types are honored by the benefactor or the policy holder, then the insurance is secured and may be withdrawn from at any point that it is needed for medical expenses. However, using health insurance money for non-health related issues or allowing someone else to use the insurance by forging information may result in prosecution for insurance fraud. If one of these acts are committed and discovered by the insurance company’s investigators, the health insurances are immediately revoked, even if the policy holder or beneficiary continues to pay the premium. Then, the insurance company can file an immediate lawsuit against the offender. This is actually a common occurrence for many health insurance plans because many people are unaware of insurance company’s ability to track where, what and who uses the health insurance.

What options are there for health or even life insurance plans?

There are many diverse health insurance plans that cover many diverse situations of medical expense needs. Finding the right plan is important for those looking for health insurance. Some health insurance plans carry coverage for everything from dental needs to doctor check-ups to major surgeries. However, some policies will only cover a certain type of medical malady or only cover bills that are under or over a certain amount of money. The deductable of the policy determines what amount of money is covered for medical expenses. For insurance, if the deductable is $2000, then only a bill of $2000 or more is covered.

To pick the best insurance policy simply depends on what is a common medical need for a family or individual. If a person makes several trips to the doctor per month, then medical check-ups and doctor bills should be covered first; whereas if an individual has several young kids, then additional dental insurance might be a good thing to look for in a policy. There are plans that cover so many diverse bills in health insurance plans.

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