INDIVIDUAL HEALTH INSURANCE FAQ
What is the difference between individual and family health insurance policies?
As the name suggests the individual insurance policy holder will receive the policy benefits for him, but in the family insurance each member listed in the policy would enjoy the benefits.
What are employee assistance programs?
The insurance companies or the employers sometimes provide extra services, such as mental health counseling. This service does not require any direct payment by the individual or the employer.
What is HMO?
Health maintenance organization- they are more useful when used under the group insurance plan. They are very cheap but do not give you much freedom. The main advantage here is you escape from the burden of going through a lot of paper work. You also receive coverage for health promotion programs. But the only drawback here is you are allowed to receive treatment only from a specific set of doctors. Or else you have to pay.
Which is best the POS or the FFS?
Flexibility is the main difference between the point of service and the fee-for-service plan. The ffs allows you to enjoy maximum flexibility but it is more expensive and has additional paperwork. In pos there is only limited freedom so it’s not as flexible as the ffs. In pos you have to choose a primary care physician, if he is not in the list then you having to pay your own bill. But in ffs you can choose your own doctors and hospitals. So if you do not mind about the expense then ffs is advantageous
Why should I pay the co-payment?
The insurance company asks you for the co-payment before you buy your health insurance policy. The company asks for the co-payment for doctor’s visits or prescription medication
GROUP HEALTH INSURANCE FAQ
Is a group plan appropriate for me?
Group health insurance would allow you to get the benefits of individual health insurance. But since the purchasing power will be high in the group you get the benefits for a low cost. And even if your company doesn’t offer health insurance or if you are not in a job then you can get a group health insurance policy through some other notable groups like churches, clubs etc
What are the advantages of providing health insurance to my employees?
If the company provides health insurance to its employees, then the employees become happy and they don’t switch jobs. And since the group health insurances are tax deductible, it helps the company to manage taxes.
Will I get any extra benefit through the group health policy?
he group health policy provides the benefit rider. This actually functions as an add-on and provides an extra benefit like the dental insurance or life insurance for some limited number of years.
What is a fully insured employer group?
In the fully insured employer group, the employees would get the health insurance policy from their employer. And thus they can enjoy the medical benefits of the policy. There is another division here called as the fully insured group here the worker or the employee would obtain individual certificates.
What are the benefits of the health saving account?
Here you can invest some cash in the HSA account and then you can spend it for your medical bills. This is a tax free fund.
DENTAL INSURANCE FAQ
Should I invest in a dental plan?
Dental insurance would cover the cost of your dental treatment. If u have any serious dental ailments then it is advisable to take up the dental insurance policy. The dental insurance policy also ensures that the patient receives regular preventive care. Such that serious dental diseases can be prevented or diagnosed soon. The dental insurance provides 100 % coverage for major dental procedures.
What are the various types of dental insurances?
Basically there are two major types of dental insurance, the indemnity plan and the managed care plan. If you are under the indemnity plan then you have to pay for your visits to the dentist. And in the managed care plan, there is no need to pay for your visits to the dentist. But under the indemnity plan you can choose your own dentist. But the managed care plan does not give you any such freedom of selecting the dentist.
What kind of dental insurance plan would be appropriate for me?
First you have to analyze the two kinds of insurance plans. If you are reluctant to pay for your visits then the managed care plan would suit you. But if you want only a particular dentist to treat you and you are ready to pay. Then the indemnity plan would be best.
What is the difference between the in-network and the out-of-network dentist?
An in-network dentist is the one who has made a deal with your insurance company to treat you with defined rates. And if you’re under the managed care plan then the dentist will not ask for any fee during your visits. If your dentist or the dentist of your choice is not listed in the managed care plan. Then that particular dentist is called as the out-of-network dentist. Here again you may need to pay for your visits.
What is the preferred provider organization plan?
The PPO plan again comes under the managed care plan. Here a group of patients are allowed to receive dental insurance care from a set of dentists. The dentist will charge less than usual for the particular group. So now if you wish to see a different dentist then the payment is not reduced.
LIFE INSURANCE FAQ
Why should I take up a life insurance policy?
The life insurance policy is usually a kind of protection scheme which would allow your family or beneficiary to survive financially after your death. This is called as the death benefit. And if you think that your family requires monetary support after you are gone then it’s better to take up a life insurance policy.
Which is best term life or permanent life policy?
In the term life insurance the duration of your policy exists only for a certain period of time. And if you live longer than the specified time period then the policy expires. Here the initial premiums are less but as you grow older the premium amount increases. So term life insurance is the best when you don’t need a life long insurance. But the permanent life insurance policy gives you a life long protection. This policy also provides you with loans which must be paid back. The permanent life insurance is a bit more expensive than the term life insurance if you don’t want the insurance for long.
What are the different types of permanent life insurance?
There are 3 types of permanent life insurance:
- Whole life
- Variable life
The whole life insurance is just like a normal life insurance, in which the premiums have to be paid for a specified time or for the entire life. But the premium amount would be constant here.In the universal life insurance, first you have to pay an initial amount later the premium amounts can be paid at your own will. You can also modify your death benefit amount.The variable life insurance would separate the term life and cash portions. And it allows you to manipulate the cash portions as you like.
What is the procedure for getting a life insurance policy?
First an application form should be filled and submitted to the insurance company. After the application form is processed the insurance company would conduct a medical exam and if all their conditions are met. Then the company would issue the policy.
How much should I insure?
This depends on your financial background and the amount you think would be sufficient for your family. Many financial experts suggest 10-20 times your annual earning to be insured.