As the very name suggests, insurance is a means of granting protection against monetary loss in a variety of situations. For example life insurance makes good the financial loss suffered by the dependents when sole bread winner family dies. Fire insurance pays all or part of the loss suffered by an owner of the house if the same is destroyed by fire. Automobile insurance helps cover the damages resulting from an accident. The insurance industry has revolutionized to such an extent that people are known to buy to cover the most unusual types of financial losses. When everything else can be insured, there is no way a health insurance can lag behind, which is as popular and as important as any of them. The simple explanation for health insurance would be, this insurance helps pay medical bills.
The principle that allows insurance to exist is loss sharing. Simply put, many people seek insurance, and they all pay the insurance company. These payments are called premiums. The company then promises to pay them much more than their premium in the unexpected event that whatever the insurance is for occurs. This promise of possible payment is called a policy. The three most common types of insurance are (1) life insurance, (2) private health insurance, and (3) property liability insurance.
Before the 1920as, there was very limited health insurance and very few people paid attention to it. Back then, it was common to deal with sudden illness by giving away life savings, going into debt, or simply not dealing with it at all and dying without the proper care. Although some doctors were willing to accept instalments, this did not help when a patient died before recovery as their family would be stuck with the debt. Health insurance was so difficult for the average person to afford that certain diseases became known as rich manas diseases, because only rich men could afford to have them treated. There are a few reasons why this may have been the case. Life insurance was the most common kind of insurance back then, and maybe nobody ever thought to insure health as well. Maybe people were too poor in general back then to afford the necessary premiums to make the system work. Maybe people had more trust in fate back then to keep them well. Nonetheless, life before health insurance was certainly difficult.
Health insurance industry has undergone a sea change now. Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines and other medical care. The rising cost of medical and newer diseases and health complications coming to be known have increased the need for adequate health insurance. People do not need to suffer in silence to day as did the people of the bygone era. No wonder mortality rate was so high in the absence of lack of immediate attention or inability to foot the bills of the doctor. Look at the irony of it all. Man has no money for his treatment, he alone suffer. Man dies and the nominee gets all the insurance money.
These days, insurance is also available for health related issues not directly involving life and death. For example, one can now purchase disability income insurance and dental expense insurance. Disability income insurance is like life insurance before death, allowing buyers to support themselves and their families while they are sick or injured. Dental expense insurance is part of a preventative insurance industry that aids buyers in staying healthy to prevent illness. These other types of health insurance are usually purchased by employers on behalf of their employees. These combined insurances make becoming sick much easier on todayas well covered employees. All the employee need do is accept treatment, while the finances are taken care of for them. The flip side of this new convenience is the markup that occurs when it is companies with bottomless pockets that must foot todayas medical bills. In my observation, this contributes to the inflation of medical services.
Some relief is provided here by the competition introduced by the various financial institutions competing to provide health insurance at the lowest cost. Insurance companies seem to be aware of the importance of health insurance to the average consumer. Consumers of health insurance get a good feeling from knowing that any treatment within human knowledge is within their own reach. Despite the fact that medical care may now be more expensive because of the insurance companies, the prevalence of health insurance delivers a sense of security to the general public.
Specialized health insurance options also aids with the development of the performing arts. It is common these days for performers to have special medical coverage because they are more prone to injury. As their physical health is their livelihood, specialized health insurance reduces the risk of many professions such as dancing and acting.
In general, compared to old times, where health check ups and other treatments were at a premium and paying huge bills was a remote possible, times have changed drastically now and humanity in general can heave a big sigh of relief that come what may, there are doctors for every ailment and multi-specialty hospitals ready and eager to serve and tend him back to health during times of need and emergency. Long live the insurance industry and so also the health industry. - 15224
The principle that allows insurance to exist is loss sharing. Simply put, many people seek insurance, and they all pay the insurance company. These payments are called premiums. The company then promises to pay them much more than their premium in the unexpected event that whatever the insurance is for occurs. This promise of possible payment is called a policy. The three most common types of insurance are (1) life insurance, (2) private health insurance, and (3) property liability insurance.
Before the 1920as, there was very limited health insurance and very few people paid attention to it. Back then, it was common to deal with sudden illness by giving away life savings, going into debt, or simply not dealing with it at all and dying without the proper care. Although some doctors were willing to accept instalments, this did not help when a patient died before recovery as their family would be stuck with the debt. Health insurance was so difficult for the average person to afford that certain diseases became known as rich manas diseases, because only rich men could afford to have them treated. There are a few reasons why this may have been the case. Life insurance was the most common kind of insurance back then, and maybe nobody ever thought to insure health as well. Maybe people were too poor in general back then to afford the necessary premiums to make the system work. Maybe people had more trust in fate back then to keep them well. Nonetheless, life before health insurance was certainly difficult.
Health insurance industry has undergone a sea change now. Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines and other medical care. The rising cost of medical and newer diseases and health complications coming to be known have increased the need for adequate health insurance. People do not need to suffer in silence to day as did the people of the bygone era. No wonder mortality rate was so high in the absence of lack of immediate attention or inability to foot the bills of the doctor. Look at the irony of it all. Man has no money for his treatment, he alone suffer. Man dies and the nominee gets all the insurance money.
These days, insurance is also available for health related issues not directly involving life and death. For example, one can now purchase disability income insurance and dental expense insurance. Disability income insurance is like life insurance before death, allowing buyers to support themselves and their families while they are sick or injured. Dental expense insurance is part of a preventative insurance industry that aids buyers in staying healthy to prevent illness. These other types of health insurance are usually purchased by employers on behalf of their employees. These combined insurances make becoming sick much easier on todayas well covered employees. All the employee need do is accept treatment, while the finances are taken care of for them. The flip side of this new convenience is the markup that occurs when it is companies with bottomless pockets that must foot todayas medical bills. In my observation, this contributes to the inflation of medical services.
Some relief is provided here by the competition introduced by the various financial institutions competing to provide health insurance at the lowest cost. Insurance companies seem to be aware of the importance of health insurance to the average consumer. Consumers of health insurance get a good feeling from knowing that any treatment within human knowledge is within their own reach. Despite the fact that medical care may now be more expensive because of the insurance companies, the prevalence of health insurance delivers a sense of security to the general public.
Specialized health insurance options also aids with the development of the performing arts. It is common these days for performers to have special medical coverage because they are more prone to injury. As their physical health is their livelihood, specialized health insurance reduces the risk of many professions such as dancing and acting.
In general, compared to old times, where health check ups and other treatments were at a premium and paying huge bills was a remote possible, times have changed drastically now and humanity in general can heave a big sigh of relief that come what may, there are doctors for every ailment and multi-specialty hospitals ready and eager to serve and tend him back to health during times of need and emergency. Long live the insurance industry and so also the health industry. - 15224
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