Classification of Health Insurance

There are many insurance companies that offer different types of health insurance. The difference lies on the amount recoverable, the risks insured against, the length of the insurance, or the amount of premium to be paid by the party insured.

Although there are many differences, one should thoroughly examine the contract in order to guard him from undesirable terms and conditions. Also, one should only purchase a scheme that best suits him, and should not sacrifice the services of the insurance company just because it is cheap. As such, here are the general classifications of a health insurance that one may look into in selecting the right one.

1. Comprehensive – this kind only pays a certain percentage of the hospitalization cost, physician’s professional fee, and other medical expenses. When the plan is comprehensive, there is more money payout. This is because the payment of the premium is much higher than scheduled plan.

2. Scheduled – as compared with comprehensive scheme, the cash payout is relatively smaller and the coverage is very limited. Generally, scheduled plan covers day-today health care such as visiting a doctor for a regular check up. Although this kind of plan also covers surgeries and hospitalization, the amount to be received from the insurance company is very limited.

The importance of knowing whether the health insurance plan is comprehensive or scheduled is because of the amount of money to be received by the party insured. If one knows the amount to be recovered, he can intelligently choose which among the insurance offers he would choose.