Health insurance is a legal contract between two or more parties that promises certain performance in exchange for considerations. A health insurance policy is considered a unilateral contract. This is because only one party (the insurer) is required to fulfill their obligation. While a policy owner may decide to terminate premium payments, as long as the payments are paid the insurer must meet their responsibility under the contract.
Health insurance can provide one or any combination of certain benefits, including:
- Hospital, medical and surgical expenses resulting from sickness or an accident,
- Accidental death or dismemberment,
- Disability resulting from accident or sickness. This can also be referred to as “loss of income” or “loss of time”
An accident is an injury that occurs accidentally. A sickness is an illness or disease that is not the result of an accident. Knowing the difference is important because policies may have different provisions that apply to accidents or sickness. There are some companies that sell a separate accident policy that does not include sickness.
The terms accident and sickness are widely used and often interchangeable in any discussion of health insurance. Health insurance is also referred to as medical insurance.
Health insurance is designed to protect again two types of economic loss. Loss of income and expenses for medical care which places them in either of two broad policy categories:
- Disability income policies
- Medical expense policies
Keep in mind that any discussion of this type of health insurance policy also applies to any type of policy that includes accidental coverage not just accident specific policies.
Related posts:
- Medical Insurance
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- The Urgency of Insurance
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Related posts:
- Medical Insurance
- The Importance of Car Insurance
- The Urgency of Insurance
- How to Choose The Best Car Insurance for Our Needs
- Health Life Style to Prevent Diabetes
Posted on Jul 12 in Health. Tags: Accident Policy, Economic Loss, Health Insurance, Health Insurance Policy, Legal Contract, Surgical Expenses, types of insurance, Unilateral Contract
