Question

Chapter 10 introduces the basics of an insurance contract. Discuss : (1) Why it is important to define the insured (2) the importance of the availability of riders . For example, I may want to add an optional disability benefit to my life insurance contract, you may not. (3) Why the three major types of exclusion need to be defined as opposed to "assumed".

Answer 1

Finding an affordable student health insurance plan can be difficult, especially if there are insurance terms you don't understand. Simply having the basic understanding of insurance definitions can make the difference between having a plan that will cover you for the majority of your medical expenses and one that leaves you paying thousands of dollars.

Listed below are some of the most important definitions to know when searching for a health insurance plan.

Premium

This is the actual cost of your insurance plan. Keep in mind that the higher the premium, the higher your coverage and thus, the less you will have to pay in medical bills throughout the year.

Deductible

The Deductible is the amount that you must pay out of your own pocket before the insurance company will begin paying towards any covered expenses. The deductible affects how much money you will pay to the doctor or hospital, and is typically paid at the time of treatment.

Depending on the plan, the deductible may be paid once per calendar year or once per new condition:

Once per Year

Once-per-calendar-year deductibles are paid once for the entire year and don’t need to be paid again until you renew for an additional year.

Once per Condition

Once-per-condition deductibles are paid each time you visit the doctor, unless it’s a follow-up visit for the same condition.

Co-Pay

Like a deductible, this is the amount of money you must pay out of pocked before the insurance company begins to pay for your eligible expenses. Typically this is required instead of a deductible or coinsurance, and requires you to pay a set fee for a specific visit.

Coinsurance

Coinsurance is a percentage of what the insurance will pay to cover your health care cost after any deductibles or copays have been met.