Posts Tagged Health Insurance

Learn About Six major Types of Insurance.

The word insurance is hated by people but the truth of this economy is insurance, a safeguard of you and your family. Day by day the insurance is became a necessity of the healthy financial life of everybody. The premium you pay to the insurance companies against coverage of many kind of loss which may happen in future. So nobody can not assume his future, the insurance is the only one safeguard of the unknown mishaps in future. There are major six types of insurance.

Life Insurance: life insurance is pay to your family after your death as per a contract between you and the insurer. It is a good financially beneficial to your family after stopping your major contribution to the family.

Health Insurance: the health insurance is specially coverage of the medical expenditure. It is so helpful to get quick medical treatments for the insured people at the time of emergency medical need. Sometime people can enjoy the regular check up facility with good health insurance.

Business Insurance: The business insurance gives you and your employees the coverage from lawsuits, theft, accidents, damage to your business or inventory, product recalls, and other potential financial losses.

Home Insurance: In case of a disaster such as a fire, earth quick, flood and cyclone home insurance covers your home and home belongings. This uncertain climate of the nature can not fear you financially when your home is covered by home insurance.

Disability insurance: This disability insurance is help to get coverage against your complete or partial working and earning disability.

Auto Insurance: Auto insurance is a safeguard to the driver, the car, the co-passengers and the other people who travel at the public roads. The auto insurance is so helpful to cover the claims of losses to the driver, the car, the co-passengers and any third party for an accident during driving a vehicle on public road.

Health Insurance and Pre-Existing Health Conditions

According to the new health care bill introduced by Congressional Democrats, insurance companies will no longer be allowed to deny people coverage because of their pre-existing conditions in 2013.  Until that time, people who are seriously ill or lose their health insurance because of their health will have to rely on the federal government to pay for their health insurance.

President Obama promised those who can’t get insurance that they would immediately get health coverage through a new high-risk pool.  However, in the health care bill that was approved last month by the Senate Finance Committee, people in the high-risk pool would have to wait 6 months until they could receive coverage.  The reason for this 6-month waiting period was to reduce the number of people who dropped their private insurance to receive help from the government.

Alternatively, the bill from the House of Representatives did not include a waiting period, but instead require insurance plans to pay into the federal high-risk pool if they cancel coverage for seriously ill patients.  This revision does solve the problem for people who are seriously ill and cannot wait 6 months to receive coverage, yet, there still seems to be a problem with the financing of this high-risk pool.

In both of versions of the health reform bills, the government will set aside $5 billion for the high risk pools.   The $5 billion is supposed to cover the uninsured for 3 years until private insurers can no longer turn consumers away.    Currently, 30 states have high-risk pools for those who cannot get insurance from private insurers, which covers 200,000 people at a cost of around $1 billion a year.  According to experts, there are an estimated 1 million uninsured citizens that are in poor health. If all of them signed up for the federal program, that $5 billion could be exhausted in just one year.