The purpose of health insurance is to cover the major costs of hospital stays, surgery, and diagnostic tests.
Most policies also cover the cost of doctors’ fees and medications. Generally, people who are healthy pay a standard rate. This is the usual amount paid for a policy, called the premium. People with an existing condition may be classified as a higher risk because they have a pre-existing condition. This is a diagnosed health problem such as asthma or diabetes that has required treatment during a specified time (such as six months, a year or even longer) prior to when the person applied for insurance.
You can obtain health insurance through a GROUP or AN INDIVIDUAL plan. Many employers offer group coverage to their employees. With such a plan you are almost guaranteed health coverage, although benefits for a pre-existing condition might be delayed or limited.
Individual Policies
If you are self-employed or if your company does not offer a group policy, you may need to buy individual health insurance.
An individual plan is obtained and paid for by an individual. Although individual plans can be tailored to your needs, coverage for a pre-existing condition may be denied, limited, or delayed.
Some other plan will allow you to have the medical plan without the dental and vision benefits while others will not allow separation of the benefits.
Contract Period: 1 year renewable. At renewal either the insurance company or the insured can decide not to renew the contract for any reason ranging from claims experience to premium level.
We now invite you to view these other areas of interest:
- Health Insurance – Extent of Coverage
- Deductible – What It Is & How It Works
- Coinsurance – What Does It Mean?
- Health Insurance – In A Nut Shell
At Field Insurance Brokers Inc., we are here to help you understand your policy and if you are not clear on any area please do not hesitate to ask your account representative.