Health Insurance � An Essential Requisite

Finance Articles | January 14, 2010

The concept of health insurance came into existence in the late 16th century. Health insurance like any other form of insurance is against the unforeseen condition of the recipient�s health.

Health insurance with the passage of time became an important requisite. The term insurance in a broader sense is a form of money that has been secured for certain unforeseen circumstances.

With the progress in life man has paid great deal of attention to his health. Since the progress of any and every individual is dependent on physical and mental well being. Hence, to ensure the maximum efficiency and a sense of security health insurance plays a crucial role. The health insurance might be undertaken by an individual himself or undertaken by a group of people as in case of a corporate firm. At the time of the exchange, due emphasis is paid by insurance company on the minimum level of requisites for purchase the policy. Also, the policies for the claim of the fund are declared well in advance.
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The Premium refers to the amount policy holder or his sponsor pays to the health plan annually or monthly. The amount might be claimed at the time of requirement or at the period of maturity depending on whichever is earlier. Historically, certain organizations tended to use the term health plan", while commercial insurance companies used the term "health insurance". Certain organizations came up with a concept of collecting money from individuals who are entitled to claim the funds at the time of any medical expenses.

The concept of health insurance with the passage of time has become a very crucial one. In the modern era of globalization and liberalization the world economy is seen as one global market. In this scenario where employees hold the back bone of every firm, it is the responsibility of the firm to look after its employees. It is said �Health is Wealth� hence Health Insurance is an important requisite. In broader sense, it is not just the corporate organizations many people have undertaken the policy of health insurance. Today, the world has advanced and developed. But the increased level of pollution and stress on people in everyday life has lead to weaker immunity system. Hence, it is not just to provide essential funds to bear medical expenses of personnel but also in a broader sense to provide a sense of security to the person undertaking the policy.