There are so many kinds of insurance products available, but life and health insurance are the most basic and the most essential. Your Personal Financial Mentor aims to give a proper insight into health insurance, so that people are well-equipped to decide which plan is the best for them.
There are two main criteria – need and cost. While it is desirable to get the most features and coverage in the health insurance plan, they come at a price, so the right balance must be evaluated. The age of the person taking out the policy makes a difference. A young adult is considered much healthier than a person nearing retirement, and thus, less prone to utilizing the benefits of the policy. Accordingly, the premiums charged for the younger person are lesser.
The health of an individual is also a factor. A person who is not prone to much sickness and visits the doctor only once in a while will not need health insurance as much as a person who has low body immunity and contracts illnesses very easily and often. One would need to consider the probability of having a major surgery or accident when deciding on their coverage. These are rare for the average person, but when they do occur, the amount for treatment without being backed by an insurance policy is enormous and not affordable for most.
Eye-care and dentistry are two health-related services exempt from most health insurance policies. If at all covered, the premiums would be much higher. Maternity packages are a special type of health insurance, so people planning on having a baby in the near future should opt for such features. When a person goes to take an insurance policy on his / her health, knowing in advance about a long-term health condition, there would obviously be restrictions on the insurance offered to them.
A common kind of health insurance is where the insured person pays the medical expenses up-front and is later reimbursed a certain percentage of the expenses incurred, after the treatment is completed and the claim is validated. Less frequently, the insurance company pays the major part of the medical or prescription fees at the time of treatment, while the patient pays the rest from their own pocket.
Some companies offer health and medical insurance to their employees. The terms and conditions should be fully understood, as the employee may have to take a pay cut towards paying a part of the premiums. The policy could also be extended to dependents, like children and unemployed spouses.