During earlier times, people used to live together and stayed in a group to ensure their safety, besides it being easier to live that way. A group always has more chances for survival, besides being able to produce more output. Economist and scientist John Nash received a Nobel Prize for this theory which is called the ‘Game Theory’. It is based on the concept that a man who hunts alone would get a small animal and lesser meat, than if he hunts in a group of 4 to 5 people and hunt a bigger prey, in which case more meat will be shared among them.

So it is clear that a group is better equipped than an individual to create a huge company, or even to win a war. This is such a practical theory that even though it is subconscious, people apply it to get a better result. However, the insurance sector has applied it in a different way. Whenever you get insurance for your life, your car or anything for that matter, the insurance companies actually collect a premium from a huge number of clients, or in technical terms, policyholders. After that, if a certain person needs an insurance cover, the amount of money collected from so many policyholders enables the insurance company to meet that expenditure.

Health Insurance

Health insurance covers most illness, and covers your expenses in case you are admitted to the hospital for treating the disease you were insured against. However, there are few things which medical insurance does not cover. These are the minor but important expenses which are incurred at the time a person is hospitalized and even during his entire treatment. So it is ensured that you don’t have to bear any type of basic major expense related to the treatment all by yourself.

Choosing the Right Insurance Company

Almost all insurance companies have their websites that a prospective client can easily visit to find out if a cheap health insurance plan has a package that would suit him, given that his income would permit him to shell out $500 per month as a premium (more, in case he has a family).

Plans differ in coverage, co-pay schedules and deductibles. The cheap plans are open for groups, so American corporations can take advantage of this to secure the health of their employees. If, however, you are self employed, or are working in a company where there is no health insurance plan for employees, then the internet can provide you with quite a long list to make a selection from.

The HSA, or the Health Savings Account, is one such plan. The amount of money deposited into this account can be used for paying deductibles or making co-payments, crowns, braces and other dental care services. The HSA also provides for vision care, which includes surgeries as well. Normally, you cannot use the HAS for making health insurance premiums, unless you are under the receipt of federal or state unemployment.

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Category: Medical Business
Keywords: insurance companies ,illness,Health Insurance,insurance sector ,CPR & First Aid Training