Health insurance is a promise of financial compensation against any unforeseen medical expenses. A health insurance company is an organization that provides health insurance policies that individuals can purchase to protect them and their families against any loss. This policy implies that in case of any health expense, the company will compensate any financial loss. To have this cover, a person is required to pay a fixed amount periodically to the company, which is known as premium. Health insurance companies are governed by regulatory bodies that make sure that these companies do not get involved into unethical practices.
Health insurance companies offer many types of health insurance plans namely individual health insurance plans, group health insurance plans, indemnity health insurance plans and managed care health insurance plans. Individual health insurance plans can be purchased by individuals to cover them in case of any major medical expense. Group health insurance plans are usually purchased by the employers for their employees to provide coverage for their as well as their families’ medical expenses. Individual health insurance is more expensive than group health insurance. Group health insurance premiums are paid by the employers. However, in certain cases, employees too contribute towards it.
However, each health insurance company will have its own unique policy of providing cover as well as services to the insured party. Thus, it is important to understand what is covered under a particular policy and what is excluded. Health insurance companies operate through their web portals. Local agents can help customers understand the details of the contract offered and can also provide a quote. Most companies have a national toll free number where a customer can call to obtain all these services.
Therefore, before buying any health insurance policy, customer must compare quotes from different insurance companies and the perils covered and only then get the policy written. It is possible to get a policy written over the phone or through the local agent.