People who cannot afford health insurance often seek care at the emergency room.
The insurance industry refers to a set of companies that manage risk to people’s health and property, promising to reimburse policyholders for losses in return for regular payments. The sector is divided into three distinct segments: life insurance, health insurance, and liability insurance. Each operates on similar principles, but protects policyholders for very different reasons. There are two main types of property in the insurance industry.
Liability insurance focuses primarily on automobiles because most areas require a minimum amount of coverage for each vehicle.
The life insurance industry specializes in two types of policies designed around the life of the customer. The most common type of life insurance policy is a guaranteed amount payable to the beneficiary upon the death of the insured. The second, and less common, type of policy rewards the policyholder if he lives past a specified age. In both cases, the insured pays an amount, ie a premium, to the insurer at regular intervals to keep the policy active. If this payment is not made, the policy is void and the beneficiaries do not receive any money.
Some health insurance policies require policyholders to pay monthly premiums and copays.
Another type of coverage focused on the welfare of the insured is health insurance. The primary function of the health insurance industry is to absorb some or all of the costs associated with medical care. A health insurance policy covers a person’s treatment visits to doctors, hospitals, and other specialists. There are several methods of payment, sometimes requiring a copay from the policyholder, which is a percentage of overall health care costs, in addition to a monthly premium. Health insurance is usually partially underwritten by the employer. Other health insurance providers require cardholders to visit certain approved health professionals.
Health insurance allows many people to get the treatment they need.
Liability insurance is the third type of coverage and provides security for physical objects. The primary function of this industry is to protect automobiles, real estate, and personal property against loss. For example, if a house burns down or a car is in an accident, the policyholder usually receives policy benefits for damage or loss.
A health insurance policy covers a person’s treatment visits to doctors and medical specialists.
The insurance industry covers these different fields, but the companies are controlled primarily in one of two ways. Shareholder ownership comes in the form of a public company that is owned by shareholders and traditionally managed by a board of directors. On the other hand, mutual property insurance companies are owned by the policyholders themselves and operate as a private company. These two organizational approaches are very different and offer both advantages and disadvantages for policyholders.
