Health insurance is a kind of insurance which covers either a portion or the entire risk of the individual incurring healthcare costs. Just as other kinds of insurance, the risk involved in health insurance is considerable among all people. This risk is actually created by the unknown factors which may be affecting an individual’s health condition and may manifest themselves in terms of disease, injury or disability. Insurance also helps one to escape from the kind of financial ruin that may be caused by sudden illnesses or injury. However, just like any other kind of insurances, health insurance has its own rules and regulations that one has to comply with in order to avail of the benefits.
Health insurance covers the medical cost of an individual who becomes sick or suffers from some kind of illness. It also covers the medical care of family members who become ill, even though the individual doesn’t pay for them. Most health insurance covers sickness, dismemberment, accident and injury. But some policies offer additional benefits when it comes to dental care and medical care. One of the main reasons why an individual applies for health insurance policy is to protect himself or herself from the financial ruin that may occur as a result of sudden illness, injury or hospitalization expenses. Sudden illnesses and accidents can cause huge medical costs.
A health insurance policy provides one such protection where the insured pays for the medical treatment, hospitalization, and lost income of the individual who becomes sick. Although an individual may not pay for healthcare services which are covered by a health insurance policy, he or she does pay for healthcare services which are not covered. The insured pays for the medically-needed treatments. But when the individual becomes ill and requires expensive healthcare services, he or she will have to shoulder the expenses himself or herself.
A health insurance policy also covers pre-existing conditions. In addition to this, coverage for family members is also available in some policies. A family member may be referred to as a dependent and health insurance may provide him or her with monetary assistance in case of emergencies or illnesses. However, a number of health insurance plans have high deductibles, which may discourage many individuals from getting covered. High deductibles mean that the individual will have to fork out more money before he or she gets healthcare services. If you are thinking of applying for health insurance but you are concerned about the high deductible, you can always shop around for a lower deductible.
Another reason why many apply for health insurance but fail to obtain it is because they believe that it is too expensive. A lot of people think that once they get their healthcare coverage, all medical services will be provided at the expense of the insurance company. This is never the case. There are health insurance plans that cater to healthcare and medical services, but they still require you to pay a portion of your medical fees. You can always expect to pay more than ten percent of your medical bills as deductibles in the case of private health coverage and even less if you choose to get a PPO or preferred provider organization.