Health Insurance

Insurance has been defined as a tool to mitigate any possible risk that could be associated to a particular asset. The risk is by principle, expected to happen but no one knows where or when. Also, it is assumed that a lot of people are exposed to a similar risk and hence a little amount of money from all of for the Insurance pool.
these people belonging to the same risk category could be grouped together and their contributions could contribute
One such risk that is common to most people is their own health. Accidents, sudden ailments and other such life-threatening contingencies could cost a lot of money when admitted to a hospital and most people might not be in a situation to pay up for such events. Health Insurance policies have been prepared keeping the above problem in mind. A client pays up a certain amount of money depending on the total sum of money he would like to be covered for and gets a 'Comprehensive health Insurance Plan' - wherein he is covered for that particular amount of money that he has chosen whenever he gets admitted into a hospital for the above mentioned, but genuine ailments, accidents and the like.

The history of Health Insurance can be traced back to 20th century. It is however, different from a life insurance company with respect to its assurance of premium payment and the ability to renew the policy. Health Insurance plans are a yearly contract and there is no binding on the customer that he ought to renew his policy again. Life Insurance policies on the other hand have a mandated from the customer stating that he would pay as long as the policy is in effect, until it matures.

Health Insurance plans have tie-ups with hospitals such the Insurance claims can be done 'Cashless' - clients are not required to pay for the bills and then approach the insurance companies for their claims. It can all be done seamlessly thanks to 'Third Party Administrators" who take care of the billing and other such particulars.

Health Insurance plans are carefully designed and the premiums are decided by taking the age of the client into account. Pre-existing diseases are either not covered or are covered after a specified time as mentioned in the policy. Medical checks are sometimes done before issuing a policy.

Health Insurance Policies are a boon to those who are fraught with the problem of battling with the rising hospitalization costs, medicare and medical supplies. Surgeries and operations are mostly out of your budget generally and the Health Insurance is now more critical than ever. The maxim - Prevention is better than care  - makes commercial sense now more than ever.