Health Care Insurance- Doc

Added on - 18 Sep 2019

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Part A:1.Health Care Insurance is a type of insurance coverage in which insured person is reimbursed formedical expenses paid by them. It will be reimbursed in case of accident, injury, surgery orillness. It is to be noted that insurer will not reimburse 100% of expenses paid by insurer. Thiswill depend on type of insurance policy opted.The insurer should take following steps to evaluate and choose a good Health Care Insuranceoptions:a.Research for plans available and feasibility of policy for the insurer:The insured shouldevaluate the plans available in the market by different insurance company. The plans areavailable in different range for each category of person. The insurer should evaluate thebackground of the insurer company also. It is very important that the insurer should a highlyrated organization, which has zero case of default payment.Now the insurer will encounter various plans while researching for the insurance policy. Themost common type of insurance coverage available in the market are PPOs, EPOs, HMOs orPOS plans. The type of insurance coverage the insurer choose will determine the out-of-pocket expenses and category of doctor, which one can visit.When comparing different policy, one should keep the medical needs of their familyat the top most priority. Compare the amount of benefit one has received in the past.Although opting the best plan is impossible, still this helps one to take an informed decision.b.Compare the Out of Pocket expenses:It is important to evaluate how costs are sharedbetween insurer and insured. Any insurance plan will provide the details of benefits andhow much will be paid out of pocket for services. Normally, lower the premium, higherwould be the out of pocket expenses.2.While considering a private health care insurance one should consider the Tax benefit of thepolicy opted by the policyholder. The government provides the tax benefit to each person, whoopts for a private insurance policy. The policy shall opt the policy consider the tax deductionavailable to the person from taking insurance. Further, policyholder shall invest only in thoseschemes, which provides proper investment certificate through which a person can obtain taxbenefit. Thus, the policyholder should opt the policy as per his requirement but he shouldconsider the tax benefit available in addition to the policy.PART B:Financial planning requires a person to estimate their future requirement for expense or furtherinvestment. The most critical part in financial planning in estimating the expenses. For achieving a higherwealth tomorrow, the person needs to restrict his expenses today. Tax laws prevalent in the countryaffect financial decisions.