How to choose the health insurance coverage that is
right for you?
What to look for in a policy in your particular situation?
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Health
insurance is a legal contract between two or more parties that promises certain
performance in exchange for considerations.A health insurance policy is considered a unilateral contract.This is because only one party (the insurer) is required to fulfil their
obligation.While a policy owner may decide to terminate premium payments, as long as
the payments are paid the insurer must meet their responsibility under the
contract.
A
health insurance policy can provide just one or any combination of certain
benefits:
-
Hospital, medical and surgical expenses resulting from sickness or an accident
-
Accidental death or dismemberment
-
Disability resulting from accident or sickness (sometimes this can also be
referred to as “loss of income” or “loss of time”
An
accident is an injury that occurs accidentally. A sickness is an illness
or disease that is not the result of an accident. Knowing the difference
is important because policies may have different provisions that apply to
accidents or sickness. Also, there are some companies that sell a separate
accident policy that does not include sickness.
The
terms accident and sickness are widely used and often interchangeable in any
discussion of health insurance.They are often abbreviated as A&H and A&S.Health insurance is also referred to as medical insurance.