Healthcare insurance refers to an insurance against incurring large medical expenses. With the development of the Affordable Care Act, every employee is expected to hold health insurance policy to facilitate a universal healthcare system in the United States. Through this policy, Americans are better provided with new benefits, healthcare rights, and protection in the various aspects of the healthcare system (LifeBenefits, 2014). Healthcare insurance involves a process through which a healthcare insurer estimates the total risk of healthcare and the likely expenditures on healthcare for a target group, and come up with a collective risk pooling initiative to provide insurance to the group through premiums or payroll tax payable on regular intervals. On this note, healthcare insurance is segmented into different packages whereby, employees are presented with a larger choice on the type of care they need. Such a move has led to increased consumer choice whereby, employees have the right to choose their desired coverage and incur costs on insuring related risks in the exclusion of others. This has also led to decreased cost of insurance as the insurance cover offers compensation to the specified risks and excludes other low-probability risks. This essay shall discuss the various types of employee insurance programs.
Group term life insurance is an insurance coverage that helps the family of the bereaved especially when he/she was the breadwinner (State of Delaware, 2014). Group term insurance policy is offered to a group of people and allows the beneficiaries of the bereaved to enjoy benefits if the insured dies in the specified period. This type of insurance coverage enjoys the benefit of being a cheaper option as compared to individual coverage. The group term life insurance is one of the employee provisions in the benefit packages as it is affordable. It can be serviced by the employer or employees through group contributions. This cover also compensates the insured in the event of permanent incapacitations that may result from the loss of a limb or a major accident causing incapacitation.
Group universal life insurance is an insurance coverage that incorporates a death benefit to the family of the bereaved, an over-time, tax deferred amount that on accumulation can be used as retirement. The policy also provides for children’s education and other emergencies such as illnesses. The policy is often offered in a group setting where; employees gather and on a collective initiative, purchase a cover. The business entity might also purchase the coverage for their employees to cater for any emergencies and unfortunate loss of life or impairment in their period of employment.
Term life insurance is an insurance cover that covers a policyholder for a specified period and expires at a set date (Insure | Investors Group, 2014). Once the expiry date is reached, it is up to the policyholder to consider if he/she wants to renew the policy. In most instances, such policies covers are sought after when employees engage in a particularly dangerous job outside their routine. In contrast to the life insurance policy, this cover runs for a specified limited time, for example, 26 days and expires thereafter. This policy is cost friendly for people who wish to obtain a short cover, as they cannot afford a life assurance cover. AIDitionally, it provides all the benefits that a life insurance cover would, but in the period limitation.
Cancer and specified disease insurance schemes are also a major trend in modern healthcare insurance. Such policyholders are assured of payment of a benefit amount in aIDition to other compensations held on other insured risks. The compensation can be used in the compensation of cancer-related treatment alongside other specified diseases. Lately, HIV /Aids coverage schemes have cropped up to enable people to insure themselves against costs arising from after-HIV infection life. This enables individuals to seek appropriate medical care and take care of themselves from the compensation. AIDitionally, these individuals are equipped with the ability to seek interventions through this fund as well as pursue other expensive medical options (Bovbjerg, 2007). This fund has a major advantage in that; it provides a platform with which people can afford expensive medical care in the event of such illnesses. For families that have a history of such illnesses, one may obtain the cover to ensure that they can afford the care when the disease sets in.
Accident insurance (with expanded benefits) is a policy that provides compensatory benefits to policyholders who may have on and off the job accidents. The compensation helps the insured to pay for the costs of treatment that may not have been paid by the primary insurer. The level of coverage can be negotiated between the insurer and the insured. This is in the light that, coverage may be in the silver, gold, platinum, or basic level of coverage options (Colombo and Tapay, 2004). The benefits are set to make compensations in the event where the policyholder suffers loss of life or a physical permanent impairment, a dislocation or fracture, medical expenses, permanent disability, as well as hospital confinement. For covers that insure outpatient services, policyholders stand to benefit from this scheme.
Hospital indemnity insurance refers to a policy that pays for hospital confinement, ICU, and waiver premium. The policy is available for both, individual, and the entire family. It is also referred to as ‘shop’ (Colombo and Tapay, 2004). It is available in the various classes, among them: gold, platinum, silver, and other user-specified packages. Heart and stroke insurance is another cover that helps a policyholder to cover for the medical expenses incurred in the course of treatment for heart and stroke-related complications. Disability income insurance lastly is an insurance policy that assures an individual policyholder of an income when the insured suffers a sickness or an off-job accident.
As noted earlier, term life insurance policyholders stand to benefit from limited coverage for risks accruing to a certain activity. Policyholders pay a cheaper premium due to the limited time of coverage and tailor-make the policy to suit the inherent risks. Universal whole life insurance aIDresses the financial needs of the bereaved family after the departure of their breadwinner. When it is in a group setting, it is often cheaper, and the premiums are lower (Bovbjerg, 2007). Another major advantage is that It covers many risks among them incapacitation and death among others. It also covers for emergencies and educational demands of the dependents left behind. Accidental death & dismemberment insurance is a policy that pays compensation where the cause of death is an accident. This amount provides an extra benefit on top of the life insurance cover and covers many accidents among them, homicides, exposure, traffic accidents, and drowning among others. Long and short-term disability insurance is advantageous as it aIDresses the needs that may result from the disability. This includes further disability development, treatment needs, and rehabilitation charges.