Taking out an Individual Health Insurance
posted on 29 April 2011 | posted in
Holiday and Travel
A health insurance policy is essentially an agreement between an individual and the insurance company. This contract usually carries with it a term (length of coverage) which may be renewable monthly, annually, or can be for life.
The various types cover and corresponding coverage limits are expressed in absolute amounts or number of times a feature may be availed that will be covered under the policy are agreed on prior to the effective date and are stipulated in the member contract.
A standard individual health insurance policy will have the following features namely the premium which is the amount the insured pays the health insurance company plan to take-out the policy, the deductible which is the amount that the policy holder must shoulder or pay out-of-pocket before the plans pays its share. Co-pay refers to the amount that the policy holder must pay out of pocket before the health insurer pays for a particular medical visit.
In some instances, the means of availment is under a co-insurance method where a percentage split of the total medical bills is agreed between the insured and the insurance company as opposed to the fixed amount up front under a co-payment method.
All plans will always have exclusions. Not all services are covered and the insured individual is expected to carry the burden of the full cost of non-covered services out of hi/her pockets.
All individual health insurance plans will have its advantages and limitations. It has never been a question whether to buy one or not but rather shopping around for the best plan that fits not only your financial budget but more importantly your unique healthcare requirements.
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