Medical Insurance Policy

A Medical Insurance policy is a contract between1. Co-insurance / Co-payments- This is the
an insurance company and an individual or a groupamount that would need to be paid by the insured
which promises to pay for medical carebefore the insurance pays and in addition to the
reasonably required by the insured policy holderdeductible.
for treatment in case of any injury or illness. Even2. Out-of- pocket- An out of pocket expense can
now a day's medical insurance policy is providedrefer to how much the co-payment, coinsurance,
for disease like obesity.or deductible is.
If an individual has taken up a medical policy then3. Waiting Period- This is the time one would have
he pays the premium according to a specific timeto wait until certain health insurance overages are
frame as decided between the two groups.available.
Usually, the policy takes care for the health &4. Grace Period- This is the amount of time one
medical acre of an individual but if the premiumshas to pay their health insurance premium after
value is higher the insurance covers the familythe original due date and before insurance
members also. In the case when the policy iscoverage would be canceled.
taken by a group or an association, then all the5. Lifetime Maximum-This is the most amount of
individuals under the association receive themoney the health insurance policy will pay for the
certificate of insurance. Some key points likeentire life. Pay attention to individual lifetime
payment of premiums, deductibles and co-paysmaximums and family lifetime maximums as they
are decided at the beginning and both the partiescan be different.
have to abide by these rules.6. Out-of-Pocket - This is the cost one would pay
Searching a Medical Insurance Plan?out of their own pocket. An out of pocket
The terms in the policy may be hard toexpense can refer to how much the co-payment,
understand at times and the person may standcoinsurance, or deductible is.
confused. So here is list of some termsIs Medical Insurance Necessary?
commonly used up in an insurance plan:Man saves money for a better & safe future. But
Deductible-The deductible refers to the yearlylife is a string of surprises. A serious medical
amount of money that the insured would need tosituation can strain one's pocket, thereby
pay before any benefits from the healthemptying all the lifetime savings.
insurance policy can be used.