2009 4 Nov

How Important Is A Catastrophic Health Insurance Plan ?

Although there are many health insurance plans available, Catastrophic Health Insurance policies meet the specific needs against calamities.

Generally these plans are of two types: comprehensive type and supplement plans. The Comprehensive Catastrophic Health Insurance mostly| in most of the cases covers the conventional health care also health care services in emergency such as cost of ambulance, on the other handthe Supplement Insurance Cover takes care of requirements such as psychiatric treatment and nursing care etc. In both the cases, after the deductibles are paid, the total responsibility of the major portion of the medical expenses of the insurer’s treatment is borne by the insurance provider.

Merits and Demerits :
The Catastrophic Health Insurance is most handy in case of tragedy as it will compensate for the largest amount of medical costs that you are in likelihood of facing in your life span. The advantage of this insurance cover is that it has a low premium as compared to the conventional health insurance policies. General health policies do not reimburse for relatively minor expenses of consultation charges of the doctors. In case you you maintain a good health and are not dependent on the doctor’s prescription, Catastrophic Health Insurance is suitable for you to save the money on your health insurance cover. At the same time , if you are diagnosed for any serious health issue and can afford some increase in the insurance premium, Catastrophic Health Insurance is the best choice for you.

If you are already suffering from some diseases like diabetes, heart problem, AIDS or multiple sclerosis the drawback with the Catastrophic Health Insurance is that it will not cover any expenses on these ailments. disadvantage of Catastrophic Health Insurance is that, it does not cover the cost of certain diseases like, cardiac problems, diabetes, AIDS etc. Moreover , these insurance plans do not cover any compensation for the preventive care on any disease. You will have to meet all expenses for the routine treatment of these diseases from you own pocket such as payment of the doctor’s fees or medicines. Also, the Catastrophic Health Insurance will not compensate for anything unless your deductible is completed.

If you cannot spend ahuge amount of money on the medical bills, you will not be benefited from this plan.

These Catastrophic Health Insurance plans will mostly suit those people who intend to take the [spin]advantage from reduced premiums and get huge annual insurance deductibles. This can range between $500 to $5,000. Besides, it provides a cap under normal cover, which is a lifelong benefit ranging from $1 million up to $ 3 millions. The insurance policy automatically gets terminated when the cap amount is reached.

To summarize the entire concept, Catastrophic Health Insurance policy is a typeof an alternative fiscal security in bad times rather than being only a health care plan. You can also get an appropriate tax rebate under Health Savings Account (HSA), if you opt for Catastrophic Health Insurance plan.

This insurance is an ideal option for the people with secured monthly earnings. Prior to selecting the Catastrophic Health Insurance policy it is necessary to find out the premium that has to be paid yearly and you should have that specific amount of money ready with you.