Medical Insurance
Insurance Dictionary -> Medical Insurance
Medical Insurance, closely related to health insurance, is the broad term for policies that go towards covering the costs associated with medical and hospital bills. It is a way of protecting those that might fall in to financial strain if they become sick or get injured out of the blue, and cannot support their families due to the costs; or even worse, cannot afford much needed operations or treatment. Most countries have government/state medical insurance programs that assist the financially poor, but there are also many private policies and programs that can be utilized individually or as part of somebody’s employment. Those qualified for a position often seek out businesses that offer them good medical care.
Like most forms of Insurance, medical insurance is based on regular premium payments. Payout occurs when the policy holder needs medical care (the severity of the care needed before payout often depends on the plan and cost of the policy). Premiums differ from person to person. For example somebody that works a very dangerous job and is highly likely to be injured will have to pay far more in premiums than a postal worker. Some individuals find it almost impossible to get private medical insurance because their job is deemed too risky, like those who work in contact sports like boxing or even pro wrestling.
The annual deductible clause is often part of most medical insurance policies. Meaning before a payout can be made the policy holder’s medical bill has to surpass a certain price, before the cover kicks in. This is so minor injuries don’t result in big payouts.
Some people often feel that medical insurance is not cost effective if they are a healthy person that works a risk free job. For example why would anyone pay $50 a month if they only have a checkup cost $200 once per year? However it is a way to hedge the risk. What if you get hit by a car tomorrow?