Health Insurance – General Notes
The concept of Health 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. Health insurance 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.