Sunday, October 12, 2008

Health Insurance

Insurance 101

Human have to face all kind of misfortunes or perils. For example, a breadwinner may fall sick and become unable to earn an income or even lose his life. Dependents will be faced with both emotional and financial loss. While emotional loses cannot be compensated, financial loss can be compensated if the breadwinner had bought health insurance (medical insurance) or life insurance. Insurance, as I see it, is almost as essential as the other must have - oxygen, water, food, shelter and clothings. Among a large pool of people, there will be a majority who are fortunate and not suffer any losses, but a small minority who suffered losses are compensated from the pool of money contributed to all who subscribed to insurance. Insurance is thus shared or pooled risks.

Types of insurance

Insurance can be divided into 2 main class - life insurance and general insurance.

Life Insurance

Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event:

Premature death
Provide for Income during retirement

The main classes of life insurance are:

Whole life
Life annuity plan
Medical and health

General Insurance

General insurance can be described simply as those classes of insurance that do not fall into the class of life insurance. General insurance protects you against losses and damages not covered by life insurance such as property losses, accidental death and injuries and liability to third parties caused by negligence, etc.

The main classes of general insurance are:

Motor insurance
Fire/ Houseowners/ Householders insurance
Personal accident insurance
Medical and health insurance
Travel insurance

Health Insurance in North and South Carolina

Insurance do not come free. Those who wants to be protected by insurance against losses have to pay a certain sum of money to the insurance company that provides the insurance protection. These sum of money is referred to as insurance premium.

If you are located in North Carolina, you can find out more about insurance and get a quotation for North Carolina health insurance. For those resident in South Carolina, you can get more information and a quotation from South Carolina Health Insurance.

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