The Benefits of Having Health Insurance
Health insurance is an essential insurance which covers either a discrete portion of the entire risk of an individual spreading the risk over a number of persons, or the entire risk of the individual incurring health expenses. It is also known as healthcare risk or health reimbursement insurance. The discrete portion of the insurance deals with deductibles and out-of-pocket expenses. Out-of-pocket expenses refer to money spent on the insured’s health care. Deductible is the initial payment made by the insurer for the insurance. You can get more information about Doctors disability insurance.
All health insurance policies have two major parties, namely, the insurer or the payer and the individual who has purchased the insurance. In most cases, the insurer pays the medical expenses of the insured in the event of death or sickness. However, it also pays for all other expenses incurred during life. This includes the cost of nursing home care, surgery, chemotherapy, and so on.
Most people obtain health insurance through their employers or through direct written premiums offered by the insurance companies. Direct written premiums are generally offered by all health plans. It means that there is no limit on how many people can receive the benefits from a single plan. Individual health insurance plans can cover individuals as well as groups, families, and children. Health plans are offered by all the major insurers in the US in the form of group health insurance, individual health insurance, small business health insurance, long term care insurance, disability insurance, hospital insurance, critical illness insurance, and employer provided group health insurance.
One of the greatest advantages of a private healthcare insurance policy is that it provides complete coverage at a lower cost compared to the public ones. Such a policy will reimburse the insured for all the medical costs up to a limit set by the insurer. Such a policy will also cover the costs of any accidental damage to property, theft, and loss of limbs.
A major advantage of this insurance policies is that they are less expensive than the government-run health service but provide excellent service quality. However, private healthcare service is not available to the old age groups. This is because they are not able to bear the expenditure, which is more costly. So, people belonging to the old age groups or the physically or mentally challenged are unable to avail of such services.
Private health plans also provide the facility to choose your own doctor. This is not possible in case of the government-run health service. A major advantage of a private healthcare plan is that you can negotiate prices with your doctor and can save a lot of money. As a result, the number of bankruptcies due to medical negligence has significantly reduced over the years and this trend is going to continue in the coming years.