Health insurance or medical insurance is the most important insurance you need to get for yourself. For some rich countries, medical insurance are free for their citizens. For those who are not fortunate to live in such country, you need to get one for yourself.
Basically, this is the policy that gives us coverage in the event of hospitalization of any cause, either outpatient or inpatient treatment. These includes illnesses, accident, checkup and other related scenario. For full coverage of the plan, it is always a good idea to refer to the policy contract.
Common Types of Health Insurance in the Market
Basically, health insurance are divided into 2 category:
1st Category are those health insurances that protects you from hospital and medical bills.
2nd Category are those that gives you protection in the event of loss of income in case you cannot work anymore
HMO (Health Maintenance Organization)
For this type of health policy, it usually offers wide range of healthcare related services for the client thru network of healthcare clinics, hospitals and practioners. As a member, you will have the HMO card which you can present on the partner clinic or hospital. Depending on your coverage, they will treat you and use your HMO card for the payment depending on how much is your coverage. In short, you may not have to pay for anything if your current HMO coverage has enough limits to pay for the treatment. This is a good plan, as long as you visit their partner healthcare providers. Price varies depending on how much coverage you want and whether the partner clinic or hospital is either private or public. In country like Philippines, HMO is more preferable as it offers cashless transaction in the event of hospitalization. Not all countries offer this type of health insurance though. It’s a term plan wherein you pay for it as long as you need. Once you stop, coverage also stops and there is no cash value.
Medical Insurance – Hospitalization
This is the type of policy we can get from insurance companies, especially those big providers. It gives coverage on various hospital related treatment, with pre and post coverages depending on the coverage you have. However, this is the type of health insurance where it only offers reimbursement most of the time. You pay for the bill first, then you can file a claim afterwards. This is the plan most foreigners in Singapore are getting to protect themselves. Especially that Singapore medical costs is really skyrocketing these days. In choosing the best medical policy, always compare the total coverage, the price and the accessibility of treatment. It’s also a term plan with no cash value. Price tends to increase as we grow older, considering the medical risk older people have. I
Medical Insurance – Hospital Benefits
Unlike the other one that cover’s hospitalization cost and refund/pay you for the final bill, this type is a bit different. Under this policy, it doesn’t matter how much is the bill. It only gives you daily allowance as long as you are inside the hospital receiving treatment. This policy is mostly availed on top of existing personal medical plan or on top of current company medical coverage. While the company or personal insurance pays for the bill, this extra policy will give you some extra money daily. This is useful in times where you need to take leave of absence which might result to loss of income on that day. To avoid worrying about the income, this is a great plan to consider.
If you have this plan, it will give you lumpsum payout in the event of disagnosis of any of the critical illnesses listed. Take not that illnesses have stages or severity. Choose the policy that covers all stages from minor to major cases. Upon diagnosis, depending on the survivability period, you can file for a claim. This policy usually covers worldwide. Once you get this plan, it comes with a waiting period where you cannot claim for a critical illness if it happens to be within the waiting period. Recommended amount of coverage for this plan is usually at least 4 times the annual salary. New plans offered are now multiple claims.
In some worst scenario, an ill person may not be able to work or perform basic duties upon hospitalization or illness. For example are those in coma, bed ridden, paralyzed, in wheel chair and other conditions. With this, they probably lost their ability to work and earl a living. If you have a disability insurance, you can get monthly income for as long as you qualify for the disability condition. Usually if you cannot work anymore because of the medical condition. During this time, insurance payout will help to fund long term care and daily expenses. This is a good addition to your health care policies.
In health insurance, the more the better, the higher the coverage the better. However, it also comes at a cost if you tend to avail all of them. Choose the plan that you needed most base on your current circumstances. This is something you want to have but you don’t want to use.