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| Health Insurance Overview |  There are three main types of major medical insurance:
- Group health insurance
- Temporary health insurance
- Individual medical insurance
Group Health Insurance
Group health insurance is one of the most common ways to effect health insurance. It is obtained through a group plan, such as that offered by an employer to its employees. This type of health insurance means that the employer usually pays at least part, and often the majority, of the premium.
The most attractive feature of employer-sponsored group health insurance is that the employer usually pays at least a portion, and often the majority, of the premium. The total premium amount charged to the group depends on the age, gender, health status, and occupation of the individuals from the group. Usually group plans must accept all qualified applicants, regardless of health status or pre-existing conditions, and usually enrollees are not asked for proof of insurability.
Sometimes larger employers offer several different group health plans. They instruct each employee to select the plan that best fits his or her personal needs and budget.
In addition to employer-sponsored group health plans, sometimes one can purchase group health insurance through a labor union, professional organization, or trade association.
Temporary Health Insurance
Temporary health insurance is a smart option for people who are between permanent health insurance plans and recognize the need to protect themselves from the often disastrous financial consequences of unforeseen illness and injury. This type of insurance provides major medical coverage for a time period specified by the buyer, typically 30 to 365 days.
As a rule, temporary health insurance is affordable and easy to obtain. Clientele often can secure coverage as early as the day after they apply. As temporary health insurance is designed to provide dependable protection from unforeseen illnesses and accidents, it doesn’t cover preventive care or treatment of conditions that were present before the policy began.
Individual Medical Insurance
Self-employed people and others who cannot take advantage of employer-sponsored group health insurance usually choose an individual medical insurance policy. When people apply for an individual medical plan, they can choose any plan from any company that suits their needs. Individual medical plans usually offer many options for tailoring coverage and adjusting the price.
The cost and acceptance of individual medical plan depends upon the applicant's health history and status. Insurance company may refuse coverage to certain individuals, or it may exclude certain medical conditions from coverage under the policy.
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