Health Insurance is very important in today’s life.because we know that the inflation rate in the world is increasing day by day due to which a common man left nothing at the time of his health crisis. And medical aid costs a lot so it’s a wise idea to think about the health insurance.In this article we will tell you about what is health insurance, it’s purpose and duration.and also how does it work so that you can be aware of this opportunity.
What is Health insurance?
Health insurance is a way to securing for your health care expenses. Your health insurance protects you from paying the full costs of medical services when you are sick and injured.
Health insurance is a sort of contract between a company and a customer. The company agrees to pay all or some of the person’s healthcare costs who take the insurance in return for payment of a monthly premium.
Duration of Health insurance:
The contract of health insurance is usually a one-year agreement, during which the insurer will be responsible for paying specific expenses related to illness, injury, pregnancy, or preventative care.
However, some medical insurance companies also gives opportunities for multi-year policies that offer can be for up to two years.
How Does it work?
Health insurance works the same way your car or home insurance works.you make a contract with a health insurance company and you choose a plan and agree to pay a specific amount , or premium, each month.and then your health insurer agrees to pay a portion of your covered medical costs in return of your paid amount.
Purpose of Health insurance:
When you need health care services health insurance gives several benefits to you.Some years you may require lots of medical services, other years you may need less, but by the health insurance you can avoid paying the full cost of medical services on your own.
When you need health care, you and your health insurer share the medical costs. If medical costs are high for the risk pool, your health insurer may have to adjust the rates from time to time for those insured.