Types of Medical Insurance

Shopping for health insurance can be quite intimidating, but once you have a basic knowledge of the types of insurance available, the task becomes less disheartening.  We here at SimplyFinance want to be the ones to alleviate some of the difficulty.

The first thing you should know is that there are two different basic types of health insurance coverage. They are called indemnity and managed care. Indemnity, also renowned as fee for service, allows you to choose the doctor you want to see. The downside is that this freedom of choice will cost you a bit more. The other type of health insurance is called managed care. Managed care only allows you to see doctors within a certain network. The upside to this is that you will most likely be paying less than you would if you had your choice of doctor. Some managed care organizations operate as independently from other clinics and hospitals. The establishment itself will have a facility with there own physicians. Other managed care organizations will work with doctors and hospitals to come up with appropriate costs for patients under their coverage.

There are a number of available add-on plans to the two main types of health insurance. One such plot is disability insurance. Disability insurance will pay you up to sixty percent of your income if you become disabled and powerless to work due to injury or illness. When you buy your plot, you will specify the degree of coverage you want, importance a specific number of years, usually in increments of five years. Your disability insurance will then pay you sixty percent of your income for that many years.

Long-term care is another type of health insurance policy add-on. This type of insurance will pay for medical, nursing, and certain types of in-home care if you are powerless to care for yourself due to a disability or illness.

Dental and vision insurance protects you when you have serious problems with your teeth or eyes. A part of your regular checkups may be covered as well, depending on your policy. This type of insurance in included in many health insurance policies, but you can buy them separately if need be.

Hospital/surgical insurance usually do not require that a deductible is met previous to they will commence paying for your treatment, but there is a limit to how much they’ll cover. There are separate limits for the amount of hospital and doctor charges they will pay. X-ray and diagnostic lab tests, non-surgical doctors’ services, hospital services, and the hospital room itself are among the benefits of this type of insurance.

If you do not have other health insurance coverage, catastrophic health insurance may be able to save you from bankruptcy should a major accident or medical problem occur. Catastrophic health insurance covers major hospital and medical expenses. If you don’t have other types of health insurance coverage, you will need to pay out of sack for all other services up your sleeve from the major medical and hospital expenses. This type of coverage normally takes care of surgery, intensive care, hospital stays, and diagnostic X-ray and lab tests. This type of insurance usually has low monthly premiums with high deductibles.

Specific-dread disease insurance will cover costs specific to only certain diseases like diabetes, asthma, or cancer. Specific-dread disease insurance is calculated to work along with other types of more basic coverage.

Finally, hospital indemnity insurance means that the insurance company makes payments directly to you instead of sending it to the hospital or doctor group. The insurance company pays a certain amount each day you are in the hospital for a certain number of days. By having the money sent to you, the payments may be used for other out of sack expenses and bills incurred from being ill and not being able to work.