Sep 22 2010

U.S. Health Insurance!

As an American national, we all understand the importance of a health insurance. With most of us finding it hard to make ends meet, we need some type of health insurance to take care of us if something should happen to us. Whether we purchase the health insurance on our own or get it from our existing employer, we need a good health insurance for ourselves and for the other members of our family.

Health Insurance has become very pricey; so much so many families are unable to afford them and many of us give more priority to our home mortgage, the food we eat everyday that we do not feel the urgency and importance of health insurances. It is not that many of us do not want a health insurance, but most of us feel that we do not have the requirement for them until something happens and we actually need one.

This is however a very wrong notion and one can get ill or need medical assistance at a very unlikely hour and if you do not have a health insurance, things could get dearer. With no health insurance to support you during your need, there could be a major loss sometimes even death if you are unable to take care of your medical expenses on your own. Charity care can be provided in some cases however; it is not an assurance that all and sundry would be entitled to get one. Even if you do get the Charity care, you would still require further assistance from another physician or medical facility – this could put you in a tight corner since, no other physician or medical facility would admit or administer treatment without health insurance. The United States needs to come up with a solution for a better health care system that works well for all and no citizen should be subject to suffering just because they do not have a health insurance. Something needs to be done soon to stop things from going downhill.

There has been a huge upheaval on the healthcare bill passed by the American President Obama and while there are many states which have gone against it, it has also brought out healthcare reforms to a national level where lot of devising is going on. It is hard but the truth that health care or health insurance has never been in the focus. There are many issues with the healthcare sector and lots more are popping up everyday, one just has to wait and watch and see what exactly the outcome of the reforms is for the US Healthcare System and Health Insurance.


Sep 15 2010

Various Types of Insurance!

Insurance is a way to provide a hedge against financial loss of very different situations. For example, life insurance (LI) to help compensate for the loss of income and family if a parent dies work. Health Insurance (HI) to help pay medical expenses. Fire insurance pays all or part of the loss if the house is a house destroyed by fire. People can also buy insurance to cover unusual types of economic loss. Insurance is the principle of shared losses. People who want certain types of insured losses agree to make regular payments called premiums to the insurance company. Conversely, these people get the contract, called the company’s policy.

The amount paid by insurance to policyholders is known as the profit or benefit claims. The insurer uses the premiums to invest in stocks, bonds, mortgages, government securities and other income generating companies. The company pays a dividend of premiums it collects premiums and investment income earned. Insurance works because the policyholders are willing to trade a small degree of loss – the premiums – to ensure they are paid in the event of major disaster. They may own property, drive, operate a business, and participate in other activities without worrying about the finances, which may arise.

There are three main types of L.I.: Term L.I., Whole L.I., and Endowment L.I., and the many companies sell these policies which combine these three basic types of insurance. Term life insurance provides benefits only if the insured dies within the period covered by the policy. Whole life insurance provides life insurance coverage. Endowment life insurance is similar Life Insurances; pays the nominal value of the insured deceased. However, endowment is mainly a method of saving money and policy holders mostly use endowment policies for the betterment of their children like funding their education etc.

Health insurance is undertaken to pay all or part of the costs of hospitalization, surgery, laboratory tests, drugs and other medical care. Increase in medical care has increased the need for adequate health insurance. People without coverage could cause serious financial difficulties if there is a serious illness or accident. Private health insurance sells insurance for individual and groups. Most people are covered by individual plan of group health insurance where they work. The group plans may also cover the family of the insured. Group health insurance usually costs less than individual coverage because of administrative and other costs are lower.

Individual health insurance is provided primarily by insurance companies, plans for medical services, health care organizations and employers. Many insurers who sell health insurance policies also provide financial assistance to the insured person. A cash benefit is a fixed amount for each medical expense or each hospitalization. If cash payments do not cover the full cost of medical care, the insured must pay the balance. Individual health insurers offer four main types of health insurance. They have hospital insurance, surgical expense insurance, insurance costs and large ambulatory health insurance costs. Insurance has its own advantage and benefit; it is all about choosing the right one to suit your requirements.