Why You Should Take Health Insurance Policy
It will not be ideal to talk of any insurance Policy without knowing the basics of what insurance in itself is.
Simply put, insurance is a means of spreading the burden of losses over a large number of those who are likely to suffer losses, so that no particular individual’ losses are not made good.
We live today in the world of businesses, small, big, national and multi-national. Colossal amounts of capital are invested in a variety of businesses.
Insurance is often referred to as a pool of risks. It funds its services through contributions(premium) from those who ate likely to suffer losses in view of the risks they are taking , should any ugly event happens.
Insurance is wide and diverse . We therefore has to look at the different types of Insurance viz:
- Motor Insurance, (ii) Fire Insurance,(iii) Burglary/Theft,(iv) Fidelity Insurance, (v) Accident Insurance, (vi) life Assurance (health policy) and many more.
For the purpose of this piece , we are focusing on the Health Insurance Policy.
You will agree with me that one of the low points of insurance in Nigeria is the fact that majority of Nigerians lack basic knowledge about this vital sector of the economy or those that know, simply refuse to buy into the various insurance policies that are available.
If you probe deeper into the reasons why these set of people refuse to be involved in this type of policy, they have bundles of reasons for their actions –they are still considering it.
To this effect, this write up will help to build this discourse by giving basic insurance intelligence , with the hope will assist better to redefine the public perception of insurance practice.
As mentioned earlier , our emphasis will be on the health insurance scheme. By this, we hope that a sizeable number of people would not only come to realize how desirable it is to have insurance policy but will also come to appreciate insurance as an indispensable companion.
TYPES OF COVER
There are two types of cover typically available: Group or Individual.
Most people get Health Insurance through their jobs or are covered because a family member has insurance at work. This is called ‘’group insurance’’.
Group insurance is generally the least expensive kind of policy . In many cases, the employer pays part or all the cost. However, some employers offer only one health insurance plan. Some offer a choice of plans: a fee-for-service plan, a Health Maintenance Organisation, HMO , r a preferred Provider Organisation, PPO for instance.
We should notice , that, not all employers offer health insurance. But some well established do avail their staff the opportunity of this health policy plan. But you might find this not to be on ground in your establishment, especially if you work for a small business or work part-time job.
If your employer doesn’t offer health insurance , you might be able to get group insurance through membership in a labour union, professional organization, club or other organizations.
In Nigeria, it is National Health Insurance Scheme(NHIS) for the government workers and being subsidized by the government once a staff has registered under the scheme. The States also have their own.
Nonetheless, if your employer doesn’t offer group insurance , or if the insurance offered is limited , you can buy an individual policy. You can get fee-for-service, HMO or PPO protection.
But you should consider your options and shop carefully because the coverage and costs vary from company to company. Individual plans may not offer benefits as broad as those with group plans.
MAKE A RESEARCH
You should try to make a research before you buy any health insurance policy in order to be sure you know what it will pay for and what it won’t.
In a nutshell, read the policy very meticulously. To find out about individual health insurance plans, you can call insurance companies, HMOs or PPOs in your community ,or find time to discuss with an insurance agent who handles your car or house insurance.
When scouting for individual insurance, it is desirable to take notice of the varieties of policies and this can be done by contacting different insurance companies or by asking yur agent to show you policies from several insurers for comparison.
Also, make sure the policy protects you from large medical costs; read to understand the policy to be sure that it provides the kind of coverage that’s ideal for you . Remember, the bottom line is for you not to encounter unpleasant surprises when you’re sick or in the hospital.
Make sure you check to see that the policy states the date that it will begin paying(some have a waiting period before coverage begins) and what is covered or excluded from coverage.
Be careful of single-disease insurance policies. There are some policies that offer ptrotection for only one disease, like cancer.
If you already have health insurance, your regular plan probably already provides all the coverage you need. Check to see what protection you have before buying any more insurance.
CHOOSE THE PLAN THAT MEETS YOUR NEEDS AND BUDGET
As said earlier on, there are many different types of health insurance and each has the pros and cons . There is no one ‘’best’’ plan as the plan that’s right for a single person may not be best for a family with few children.
Also, a plan that works for one family may not be right for another. When you choose a health insurance plan , you should choose the plan that meets your needs and your budget.
Remember, cost is not the only thing to consider when buying health insurance. You should also need to consider what benefits are covered. You need to compare plans carefully for both cost and coverage.
In Nigeria, most insurance products are generic in nature, therefore, you may find out that under critical examination , the health policy you take from one insurance company , for instance , is not essentially different from the one you take from the one offered by another.
group insurance, or if the insurance offered is limited , you can buy an individual policy. You can get fee-for –service, HMO or PPO protection. But you should consider
Many of these viable organizations offer health insurance covers to their members