There are two primary types of health insurance: medical and disability.
Medical
Many individuals have all or part of their medical insurance provided by their employer. However, some people need to seek out their own group or individual medical insurance. These individuals may be self-employed, for instance.
Basic medical insurance takes care of the initial hospital surgery and supply costs. It usually covers from the first dollar of expense incurred. But there are limits on how much the policy will pay. And there are limits on how long it will pay.
There are also restrictions on coverage. An example is a pre-existing condition, such as diabetes or cancer. Often these illnesses are not covered. They may be covered only after a specified period of time if there is no recurrence of the disease.
A major difference among the various medical insurance policies is how much they pay per day for a hospital room.
For young adults until age 26 you are able to be covered by your parents’ medical insurance. If you marry or get a job that offers insurance you are no longer qualified to be a part of their insurance coverage. For military dependents, check with your sponsor. This is a very important employee benefit to look for when you are considering different job opportunities. Check into COBRA prices and the Health Insurance Marketplace.
Health Insurance Marketplace
With the Health Insurance Marketplace, there is information provided to take a to take a complicated procedure and hopefully help to compare plans to make it simpler.
There are 4 “metal” categories/plans: Bronze, Silver, Gold and Platinum. These categories show how you and your plan share costs.
Costs of Health Care pay premium to your insurance company. Pay out-of-pocket costs, including a deductible.
Plan and network types – HMO, PPO, POS and EPO. Some plan types allow you to choose your doctor or healthcare facility.
Disability
One of your greatest assets is your earning power. It is important to protect your earning power and income. You do this with disability income insurance. Disability income insurance pays an income to you if you cannot work because of an injury or illness. The amount of coverage usually is limited to one-half to two-thirds of your gross income. This limited amount of coverage is designed to encourage you to return to work as soon as possible. It is designed to discourage you from staying out of the work force and living on disability income payments.