Granted, it is always not easy to read individual insurance contract. Policyholders often have to struggle with the various terms and conditions governing their coverage, and it can get frustrating when new customers set out to find healthcare providers with products and services that match their requirements. Here in this article, we will walk you through some basic concepts used to describe the insurance business to help your job of navigating this tricky landscape.
One of the most important terminologies you may find is beneficiary. This describes the recipient of the benefits should an event under insured comes to realization (e.g. demise of policyholder). The term can be used to refer to an individual or a group.
Coinsurance is another name you will likely hear about. Coinsurance is the percentage of money the insuree pays. As an example, a coninsurance of 80/20 split means that the insured person is responsible for the first 20 percent of the covered loss while the insurance company will only take care of the balance loss.
The Deductibles / Excess refers to the amount of money the insured person pays out of pocket before the insurance company starts covering the insuree (similar to coinsurance above). As this have direct impact on the amount of payment required as premiums, you should make sure that you do your math to in order to bring down the premium requirement.
Exclusions are the medical conditions, treatments or benefits which are not covered by the plan. Some examples include hazardeaous activities, deep diving and in general voluntary participation in professional sports that are perceived to be dangerous and pre-existing medical conditions. In the previously related cases the insurance provider may reject claim requests.
The Premium is that amount to be paid by the insuree in return of an insurance coverage. It is an accepted practice in the industry for the insurance providers to offer 12 months contracts. Premium payments may occur annually, semi-annually, quarterly or monthly in many cases. You may discover that the most competitive providers will generally offer more limited benefits and services. Additionally, as suggested above a higher deductible means lower premium for you as well.
Similar to the upper limit applied onto the customers for various benefits, the insurance company also defines what is called maximum policy coverage and this spells out the maximum compensation an insurance company is going to pay when an insured event takes place.
Underwriting is about the internal assessment by insurance companies on the possibility and probability of an insured event to happen. This is calculated to define the company’s costing and will be used to determine the required premium to be charged. It also provides some form of guideline for the company to evaluate if it makes sense, business wise, to take up such risks.
Pre-existing conditions in general describes all forms of medical conditions that have been affecting any person even before an insurance plan starts.
The above elements will provide you with some insights to select the various offers you may find at http:// www. international-healthinsurance-plans.com.
