Medical Insurance

Medical Insurance policies are an inevitable care against all health hazards both for physical and mental health of an individual. It is a financial policy of care under which treatment of any kind of illness or injury is taken care of by the insurer for the insured. It is a mutual bond or understanding between the company concerned or an individual. Such a medical insurance provides cover to an individual against any diseases which may even cover the diseases related to obesity.

Medical Insurance

Such an insurance policy relives the individual from financial insecurity at the time of any unforeseen event related to any kind of illness.Under this scheme a set of premium is to be paid within specific or allotted time period by the person interested in taking such medical insurance policy. There is a mutual agreement between the parties involved regarding this at the time the policy comes in force.

Such insurance policies are meant for an individual person and even for whole of the family. However, it depends upon the amount and nature of policies as to whether an individual or the entire family is to be covered. There are certain facts which are determined when the policy is taken which both the parties are required to keep in mind relating to the amount of premium, period of payment of premium, deductions and all other points connected with the agreement of the policy.

Man is precious and the core of ones health must be of prime concern. In order to provide care and best medical facility, the medical insurance policy must be taken for a better and safe future without draining ones pocket of savings. This safeguards an individual from the risk of unbearable finances at the time of any serious illness.

Some Important Terms

Certain technical terms must be understood in order to understand the whole procedure. Without proper clarity of such terms it would be impossible for an individual to have proper clarity of such facts. Some of the terms are discussed below.

Deductible – Under this a set sum of money is to be paid as annual premium by the insured to the insurer before he awaits any benefits.

Out of pocket – this is an expense of an insured in the nature of deductible, co -payment, co-insurance or in the form of deductible which is paid personally by the individual out of his own pocket.

Co-insurance / Co-payments – this is the sum plus the deductible. This sum is to be paid by the individual earlier to what the insurance policy has started to pay for the individual.

Waiting Period – this period refers to an availability period. Under this the individual has to be patient till the insurance coverage matures.

Grace Period – this refers to the successive period within which the insured has to disburse the amount to be paid as premium under the insurance policy. This duration refers to the period subsequent to due date. If the insured person fails to make the payment of premium even within this grace period, then his policy and the premium paid is forfeited by the insurance company.

Lifetime Maximum – this refers to the optimum sum of amount that shall be paid by the insurance company for whole of the life of the individual insured under the plan. The amount shall vary according to the varied policies. This sum of money to be paid as premium shall also vary according to individual and group insurance policy plans.

Individual Insurance Vs Family Insurance

Whenever one plans to buy medical insurance policy, it is necessary to understand whether if the individual or the group type of policy is more effective. The individual policy might be less costly than the group one provided the individual does not have any difficulties. While bringing a policy into force it is important to decide that whether a basic or more advantageous policy should be taken under which the individual has the benefit of choosing a doctor.

This changes however when we decide to purchase a medical insurance policy for your dependent and not only for your individual health. In such a case it is better to go for buying a group policy instead of going in for an individual’s policy which would prove to be less costly. As the number of person increase the expenditure to be incurred there off also increases. It is evident that as the number of persons included in the plan increase, more shall be the difficulties which may run into giving money for the plan as smokers.

These plans are much more costly than the non smokers, individuals suffering from diabetes or asthma may never be included in the insurance payment plan as it may be considered as an already existing condition. General health, age and gender also contribute a great deal in evaluating the amount of premium to be paid.

The choice fundamentally depends on the family composition. The choice is entirely dependent on the composition of the family and on the actuality based on finances which would prove to be a better investment.

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