Insurance is a term used in law and economics. You can have insured yourself as well as other things to any insurance company. If something bad happens to yourself or anything that you insured in the company. A Company will be responsible for paying the money back. Suppose you insured your car in the insurance company but unfortunately your car gets damaged in an accident. Then who will be responsible for it? Don’t worry you will not responsible for this damage. The insurance company will pay you money for your car damage. So, in this way, the insurance company will help you in your bad time. In this article, you will understand the concept of the following questions.
- How to get insurance for things?
- Why you need it?
- What are the types of insurance?
- Insurance is beneficial for you or not?
- How can you deal with the company?
- How much health insurance has benefits?
- Can hospitals need your insurance card?
- If you don’t show your card what will happen?
How it works
As we know that insurance is a basic agreement between you or any insurance company in a legal way. The Insurance company fulfills your loss like any destruction of your property, death of insured person and damage to your insured things, etc. Insurance companies make a contract legally this is called an insurance policy. Some instructions, conditions will be written in this contract made by the insurance company. For example, you want to protect your home/ property, so you insure your home in any insurance company. Suppose your property got damaged in an unexpected earthquake. Then the insurance company will be providing you a big amount at a very small price.
Why we need it
In this method, we will transfer the responsibility of our losses to the company for managing risks. The insurance company is called an insurer and the person, the thing is known as insured. Life changes every minute it throws surprises at you unexpectedly; these surprises may be good or bad for you. That’s why you need to buy protection in advance for you or your expensive things. If you want to safeguard the future of your family, you must buy insurance. If you want mental peace insurance will help you a lot. An insurance company will give you the surety of a tension-free life. Medical costs are increasing day by day. So, you can ensure your health, the insurance company gives you full costs coverage to you in your bad time. Before insurance something in the insurance company, you must deposit some amount in the company. At the end of the policy, the company will give return you this amount. You can save this amount without paying tax. It means the insurance company helps you to reduce the tax burden.
Types of insurance
There are different types of insurance, but four important types of insurance are following:
Life insurance doesn’t mean you insured your life. It’s means if you want to protect your family’s future or you want to give financial support to your family after getting expired. You can do this with the help of life insurance. For example, in an accident, you got expired. The insurance company will provide your funeral expenses. If your family depends on your salary, then this insurance is very beneficial for you and your family as well. Further, this life insurance is divided into two main types.
- Insurance for a whole life: For this insurance, you must pay monthly premiums. Your life is insured until you die.
- Insurance for term life: we insure our life for a specific period. For this purpose, you just must pay some amount then the company will pay it back at the end of the contract.
Health insurance has become a luxury due to expansiveness. Few people can afford this insurance, but this is the best option. But only a few companies offer this insurance. Mostly there are private health insurance if you can afford then buy private health insurance.
3)Disability coverage insurance
If you have health insurance then in a bad situation insurance company will give your medical bills, pay for your hospitalization, etc. But what happened if you become disable or you may not be able to work for weeks, months, and years? This insurance will help you in this situation. Suppose you are not able to work ever again then this insurance will fulfill the daily expenses that you pay covers generally. It’s meant this insurance will cover your Long-term disability as well as Short-term disability.
In-car insurance, basically you insured your car for managing risks. Different scenarios will be covers by car insurance. Every insurance company has different policies for car insurance. There are different situations in which car insurance will pay you if any incident will happen to your car.
- 1st situation: if your car is injured and gets damaged physically then car insurance will pay you.
- 2nd situation: if anything will happen to your car. Supposed your car will be get damaged in an accident. Your driver or passenger also gets injured then car insurance will pay medical expenses for your injured driver and injured passenger.
- 3rd situation: if anything, bad happens to your car by yourself or not. In both cases, car insurance will pay you for this damage. For example, you are driving your car but due to bad driving, your car hit a tree and damaged badly. Then in this condition company will pay you.
- Last situation: if your car is damaged by yourself insurance company will not pay you but if your car gets damaged in an accident. Then the insurance company will give you the costs for repairing it.
Can hospitals look up your insurance information?
Here the question is what happens if the hospital does not take your insurance? Life insurance will be beneficial for you or not? In these stances when the hospital does not take your insurance, you must make a balance between what are provider charges and how much the insurance plan must pay.
One more question is that when you go for treatment in an emergency can hospitals look at your insurance? Yes. Hospitals can look up your insurance information if you permit them, for example, you go to the hospital and fulfill the formalities might be possible they will ask you “have you buy insurance”? If you say “no, I don’t have insurance”. Then they will tell you, you are responsible to pay your medical dues. But if you are insured then just tell them you have insurance without their asking. Then they will ask you to sign a form, so you must sign this form. This form will allow the hospital to make a contact with the insurance company. The hospital will make a call to the insurance company and ask for your ID. If you insured yourself then they will tell them about your medical dues that will be paid by the insurance company.
If you are treated in this hospital again after some time. You don’t have to sign forms, fulfill formalities that you have done in your past. They will look just at your billing history to see insurance which you had used in the past.
If you have your insurance card can the hospital look up your insurance information through it?
Yes, if you have your health insurance card hospital can look up your insurance information easily. The insurance company will provide you insurance card. This insurance card has all information about your insurance. This card is the identification of your insurance. When you go hospital you just must show this card then the hospital transfers your medical bills to the insurance company. This card will be very helpful for you.
In case of any emergency insurance card will helps you a lot, for example, you need emergency medical treatment but don’t have your insurance card but the hospital can look up your insurance by finding documents for checking your policy details and ID number. This process will be time and energy-consuming, may be affected your health if they will not start your medical treatment without finding insurance information. You can use a health insurance card to divide the cost of your medical expense and bills into EMIs.
Sometimes when you go to the hospital without an insurance card. If the hospital can’t access your insurance information, then you must pay your medical bills on your income. The insurance company will not pay your medical costs because you can’t have your insurance card. If you go to the hospital with an insurance card, then you just must show this card here. Then the insurance company will pay your medical costs. So, this card is very important for your free treatment.
Advantages of insurance
Insurance has many benefits it makes your life tension free. It protects you from unexpected loss. Insurance is very beneficial for our life and for those people who care for their families a lot. There are many advantages of insurance some of it are following:
- Payments of losses: Most important benefit of an insurance company is the payment of losses by the insurance company. Like anything happens to you or an insured thing then the insurance company will provide you money for the coverage of your damage. In this way, the insurance company will fulfill your loss.
- Legal contract: As we know that insurance is a legal agreement between a person and the insurance company. When you are signing on legal contract then there is no chance of fraud. If any fraud will happen with you from the company. You can easily file a report in the police station due to a legal contract.
- Unexpected expenses: If you and your family are dependent on your income. Then insurance will be more important for you and your family. Because in future if you had to deal with medical emergency suddenly. Where would you get this medical unexpected expense? In this way, life insurance will protect your income as well as your family.
- Save your money: If you want to save money for your plans. You can do this with the help of life insurance. Suppose you have saved money for your plans but unfortunately you get injured in an accident. You need medical emergency expenses. Then if you don’t buy life insurance you have only one option. You would have to use your savings. If you buy life insurance, then you don’t have to use your savings.
- Give financial support to your family in case you’re not around your family anymore: What happened with your family when you’re gone? Doesn’t your family deserve to live an insured life If yes then buy a life insurance plan, you will make sure that you can give financial support to your family for a lifetime even when you are not here?
- Giving you peace of mind and tension free life: You don’t need to be worried about what happened if you meet an accident in your future life who will help you in this situation. In the future, if you got to suffer from any disability then who will help you? An insurance company will help you in these types of situations. It also gives you peace of mind if you love your family a lot. Then definitely you will have worried about your family’s future. You feel tens about your family if you are gone then who will give your family financial support. If you buy life insurance, you don’t need to be the focus on this type of problem because life insurance will take care of these concerns.
- Health insurance will protect you from financial risks: Health insurance gives you benefits related to your health. If you want to maintain your health in critical condition, then you must buy health insurance. For example, unfortunately, you meet an accident in your future life and need urgent medical expenses. Then health insurance will be covered your all medical expenses. It means health insurance protects you from unexpected and urgent medical costs. You can get preventive carefree like screening, some checkups, vaccines, etc. I don’t buy health insurance then you must manage these medical costs in your income checks.
- Beneficial for the organization: This is a very uncommon benefit for your organization. If your organization wants investment funds but have no source for collecting them. Then insurance will be beneficial because when somebody buys insurance, he/she must give premium, amounts required by the insurance company. Then your organization will collect all premiums and would invest these premiums where they want.
- Life insurance schemes: Life insurance schemes are better than other investments. No other scheme will give you bonuses, but life insurance schemes give you bonuses. When you give premiums, it means you are investing money in this company and your investing money will be safe. After completion of the insurance policy, your amount will be returned in full by the insurance company. Investing your money and returning this money are safely paid after completing the time of insured thing.
- Provide you loan: Life insurance is most important for your life because most benefits of insurance are related to life insurance. Are you in desperate need of a loan? You need money but no one will give you a loan. Then don’t worry this is possible if want to take the loan. You can take a loan from the insurance company. There are different policies in the different insurance company so the company will provide you a loan in a percentage of cash value or according to their policy.
- Life insurance is not expensive as others: If you are comparing life insurance to other insurance like health insurance. You will find life insurance cheaper and easy than your thinking. Health insurance is more expensive than life insurance. Few people can afford but all people can afford life insurance.
Disadvantages of insurance:
There are so many limitations of insurance, following are some disadvantages of insurance:
- Time-consuming for payment: There are different types of policies and claims that arise that’s the insurance company doesn’t cover. There are so many claims which take time to process because this is necessary for insurance companies to assess the destruction of things and estimate how much they must pay to their insured person.
- Business insurance policies: There are different types of insurance, business insurance is one of them but not much beneficial than other insurance. For example, you start your business and your business enhances over time. Suddenly you must face the loss of a large amount, but you have business insurance. So, the insurance company will review their policies. There is the possibility that policy may not cover your business loss completely.
- Increase crimes rate in society: Insurance has many benefits due to its people want to get these benefits by damaged their insured things. In this way, insurance will help in increasing the crime rate. People who want to get a large amount buy the insurance and then damaged their insured things intentionally for getting this large amount.
- Less facility of saving: If you want just saving then go with a bank for saving. Saving is also a benefit of insurance, but the insurance company does not provide many facilities of savings that are provided in the bank.