Monthly Archives: October 2016

How to arrange finances during medical emergencies?


Everybody wants to avail benefits of medical insurance policy and they start investing in health products. These policies are the best financial security in case of medical emergencies. These insurance company pay your treatment expenses, for  paying upon the premium towards the company. But, in order to avail the related benefits, you will require searching for a trustworthy organization that can settle your claims in a timely manner.

Medical insurance is a type of insurance coverage which covers the cost of the medical and surgical expenses of the insured individual. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider who in return takes care of the expenses upto the decided sum as per the policy agreements. In health insurance terminology, the “provider” is a clinic, hospital, doctor, laboratory, health care practitioner, or pharmacy. The “insured” will be the owner of the medical policy, i.e the person who is covered with the health care coverage. A medical insurance policy mainly covers disablement, accidental death, family transportation, emergency ambulance cover, transportation of medicines, purchase of blood, etc.

Most people cannot afford to pay the rising cost of health care on their own. Therefore, you opt for a health insurance facility under which you pay a premium each month, and your insurer pays for a portion of the covered medical costs. At the background of the story, it is believed that the insurer is better dealers and may be they are able to negotiate better rates from the doctors and hospitals. So instead of paying hundreds of rupees out-of-pocket costs for a doctor visit, or thousands for a surgery, you pay a lesser premium amount depending on your plan against which you are covered for around lakhs of rupees.

Many people have this misconception that medical insurance is used only when you’re sick, but it’s much more than that. You can avail the advantage of the preventive services your plan offers. By visiting your doctor regularly for check-ups and getting your recommended medicines, you’re more likely to prevent more serious conditions later on. Plus, many health plans offer awareness programs and discounts on health products and services.

How Medical Insurance Work?

When you become a member of a particular health plan, you come under a group of people chosen for the same set of plan. Insurers categorize it as a risk pool as they measure the amount of risk associated with those people under the stipulated plan.Some people are at high risk because they are not in good health and likely to use a lot of medical services.  While others are at lower risk because they are healthy enough and need less medical services. So, they pool is decided upon your medical conditions.

Apart from this there are unexpected illnesses or injuries which can happen to anyone. Based on these factors, health insurer calculates the estimate money that will cost to cover the collective medical expenses for everyone in your desired plan.Each member of the plan pays a monthly rate or premium.

While buying a health care cover, you and your health insurer will share the covered medical costs. Your plan will outline your out-of-pocket expenses for each service — whether it’s a co-pay, deductible, or co-insurance. For some years you may require lots of medical services, while other years you may need less, but having a medical insurance policy in place balances your expenses and avoids paying the full cost of medical services on your own, at any point of time. If medical costs are exceptionally high, your health insurer will adjust rates from time to time.