Understanding of Health Insurance

Thursday, May 31st, 2012 - Insurance

Understanding of Health Insurance

Health insurance is one type of insurance product that specifically guarantee the cost of health insurance or care of the customers when they experience health problems or an accident. Broadly speaking there are two types of treatment offered by insurance companies, the outpatient and inpatient care. Understanding of Health Insurance

Understanding of Health Insuranceambulatory
Insurance covers the cost of outpatient physician, diagnosis / lab, and medicine. The costs incurred are usually determined by the maximum limit for each component per visit / per year and the maximum frequency of visits in one year. Restrictions can also be enforced by requiring GP referral before a visit to a specialist, or the coverage is only given when a health care carried out by the service providers listed. Outpatient care insurance is usually only an additional benefit of hospitalization insurance. In other words, must become one with hospitalization insurance.

Hospitalization insurance covers the cost of inpatient care in hospitals, which include the room, physician services, drugs, laboratory / diagnostic support, surgery, etc.. Hospitalization insurance classification is usually done by the class room. Understanding of Health Insurance


Definition of Insurance

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. (Wikipedia)

Understanding of Health Insurance

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