Health Insurance 101

Health insurance is a type of insurance whereby the insurance company pays the medical expenses of the insured individual if the affected individual falls ill due to a closed cause, or due to an accident. Insurance companies can be private organizations or government agencies. The main purpose of health insurance is to cover the cost of treatment and loss of income while the individual is not good and can not function normally.

There are different types of health insurance policies. Two of the most common are medical insurance and major defects. Major health insurance policies provide benefits for illness or injury, regardless of whether the treatment is provided at the doctor's office, clinic or hospital. The types of diseases and injuries covered are usually extensive, although there are always limitations that you may want to discuss with your agent before purchasing coverage. Major medical policies usually have a yearly deductible and maximum lifetime amount of benefits to be paid.

Even if you are covered by group insurance at work, you may consider taking an individual policy if you can change the work immediately, or if certain benefits are not provided in the Group Policy.

A deductible is an annual amount that you will have to pay per the insured person before the insurance company begins to pay your bills. There is an upper limit for the maximum amount of deductible you will have to pay in a given year.

In health policy, coinsurance refers to a percentage of medical bills that the insured individual must pay after the deductible is fulfilled. Typically, a health policy will have a condition called ' Stop-Loss ' – this is the maximum amount you have to pay for a closed medical bill.

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