Wednesday, November 14, 2012

Terms To Be Familiar With Before Looking For Free Health Insurance Quotes Online

By Mike Goldberg

The value of assurance in the modern society cannot be overemphasized. Without it, most aspects of society that people take for granted would grind to a halt. However, picking between different types of policies, pricing, companies among others can be daunting. One way of making this easier is to get free health insurance quotes online, which allows one to do comparisons from the convenience of a computer terminal.

The information superhighway makes it very easy to compare medical cover schemes and apply for the relevant coverage. A corporate body or individual can buy the right health cover in minutes, rather than the days older methods would need. By being available online, providers make it easy for potential clients to find affordable medical cover, ensuring that everyone who needs health assurance coverage can not only get it, but do so at a reasonable price.

To make proper use of the internet, it is a good idea to be familiar with the terms used in the medical assurance industry. The first word everyone will bump into is policy. This has nothing to do with statutory regulations, and simply refers to the agreement signed between the two parties, the person or company buying cover, and the provider, setting out the responsibilities and rights of each side.

A premium is what the policyholder will pay to the assurance company for the privilege of having cover. The exact amount to be paid is the result of complex calculations that considers age, how likely one is to be exposed to the risk, the number of people likely to be interested in the policy among other factors.

A deductible refers to what the insured must pay for themselves before the assurance company plays its part. For example, beneficiaries may be required by the terms of the agreement to spend a certain amount, say a thousand dollars for a year, after which the company providing the service will play its part. The logic underlying such actions is to discourage small, frivolous claims which would cost more to process than the service being paid for.

Co-payment is what the policyholder must pay for a particular service, while the cover provider pays for the rest. For instance, the beneficiary may be required to pay at least fifty dollars for a hospital visit so that the assurance provider can pay for rest. The logic underlying this requirement is similar to what the deductible requirement uses.

Co-insurance, on the other hand, describes the proportion of a bill that the policyholder must cover, while the assurance provider pays for the rest. This normally comes with a limit; the company will clear a balance, but up to the limit shown in the contract. This is one thing that must be clear to both parties to avoid problems in the future.

Exclusions refer to what an assurance company will not pay for. For instance, most dental covers will pay for extraction, fillings and so on, but will exclude any treatments for cosmetic purposes, such as making teeth straight. Because this is one area that brings a lot of disagreements, both parties should be clear on it before anything is signed. These are some of the things one should know even as they look for free health insurance quotes online.

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