Health insurance

Health insurance policies can be divided into both individual and group health insurance policies.

While an individual policy is purchased by the insured directly from the insurance company, in group health insurance, the group is the main insured and the insurance company contracts with the group. Each member receives a certificate of insurance that acts as a policy. Group health insurance policies are often cheaper than individual policies. In addition, it may also include certain special coverages that may have been too expensive for individuals.

Employer Insurance – Millions of people get their insurance through work. After meeting certain criteria, the employee is eligible for the employer’s group insurance. Medical insurance is also a common benefit of such a policy. The employer’s insurance policy and coverage may vary by organization.

Individual Insurance – Some major health insurers offer a wide variety of coverages and options to individuals, who pay the cost of the insurance directly. Many insurance companies require a medical examination and extensive details before providing coverage to the individual.

Government-Sponsored Insurance – Some state governments provide their residents with affordable health insurance based on their income. These plans are for the poorer individuals who have jobs, but where they work, no health care coverage is available. It enables the state to protect its residents from catastrophic loss due to illness, disease or accident without placing an additional burden on its program for the extremely poor and underprivileged.

Association-Sponsored Insurance – Some health insurance policies are available to people who belong to a group or organization by virtue of membership.

Primary and secondary coverage

Many people have health insurance from more than one insurance policy. To avoid duplicate recovery or to prevent the insured from making a profit on the insurance plan, the insurance company makes provisions to determine how primary versus secondary coverage will be determined. Primary coverage is provided through an insurance plan of which the insured is a member or the plan under which the participant has been a member for a long time. Secondary coverage, usually as a result of being covered as a dependent under someone else’s health insurance plan, provides reimbursement for medical expenses after exhaustion of the coverage available through the primary plan.

There are different types of policies that are sold to individuals by insurance companies. Some of the common insurance plans are:

Major medical costs

Hospital and Surgery

Reimbursement for hospitalization

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Health Maintenance Organizations (HMO) specified diseases

Short-term and long-term care

Accident policy



Home care

Limited benefit

The different types of collective health insurance are:

Fully insured employer group

Group of small employers

Large employer group

Health Maintenance Organization (HMO)

Self-funded ERISA

Association Group

Group-based care

Organization of Preferred Providers