HEALTH INSURANCE
"Health insurance is an agreement between a consumer and an insurance company". The company signs an agreement to pay all or some of the insured person's healthcare expenses in return for payment of a monthly premium or taxes. It is usually a one-year agreement, during which the health insurer will be responsible for paying specific expenses related to illness, injury, accident, pregnancy, and preventative look after.
Key Points Related to Health Insurance:
- Health insurance pays mostly medical, surgical, or preventive care costs acquired by the insured person in return for payment of a monthly premium.
- The higher the monthly premium, the lower the consumption costs are to be insured.
- All insurance plans have conclusive and co-pays but these out-of-pocket consumptions are now covered by federal law.
- Federal health insurance plans are Medicare, Medicaid, and the Children's Health Insurance Program (CHIP) which extend coverage to disabled, older, or low-income people.
- Since 2010, Affordable Care Act has restricted insurance companies from refusing coverage to patients with preexisting circumstances and has allowed children to remain on their parent's insurance plan until they reach the age of 26.
HOW IT WORKS?
Health insurance presents a simple way to reduce such large costs to reasonable and affordable amounts. The way it typically works is that the consumer pays an in-advance premium to a health insurance company and that payment allows you to contribute risk with lots of other people who are making similar payments.
Self-employed people, freelancers, and gig workers can purchase insurance directly on their own. The Affordable Care Act of 2010, commonly called Obamacare, ordered the creation of a national database, called, HealthCare.gov, which allows people to search for standard plans from private insurers that are available where they live. the costs of the coverage are sponsored for taxpayers whose incomes are below the federal poverty verge.
IMPORTANCE
To availing a health insurance policy is necessary for yourself and your family due to costly medical care treatments. Hospitalization crashes your financial budget. If the person who earns his bread and butter is in the hospital bed, then the situation becomes very critical. All this situation can be protected by paying little premiums to decrease stress in case of medical treatments.
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BENEFITS OF HEALTH INSURANCE
1. Without Cash Treatments
In case of any emergency, you can get cashless treatments as several hospital networks would work in collaboration with your mentioned health insurance company.
2. Pre And Post Hospitalization Cost
Health insurance policy covers initial and later hospitalization charges within the duration of 2 months depending upon the policy you purchased.
3. Transportation Facility
Insurance policy covers all your transportation charges including ambulance expenses too.
4. No Claim Bonus
If the policyholder doesn't claim any treatment in the last year then the insurance policy provides you a bonus.
4. Room Rent
Health insurance policy covers also all insured person rents related to hospital rooms.
5. Tax Relaxation
Premiums expended on health insurance are tax deductible.
Difference Between Property Insurance & Health Insurance
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Property insurance is a type of
insurance that provides protection against losses affecting property. |
Health insurance is a type of insurance that provides protection against losses affecting your health. |
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Property insurance protects your
home, factory, or building. |
Health insurance protects you from critical diseases. |
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It also covers damages due to
natural calamities and loss of assets. |
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Source: For updated information on insurance visit https://www.investopedia.com/.
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