Difference Between Health Insurance and Medical Aids
Insurance remains a very complicated subject for many individuals. Many people rather adopt the approach of “nothing will happen to me”, rather than “I need to prepare for the unforeseen”. In actual fact, with the amount of information that we readily have access to and the different sources we can rely on for information, ignorance on the matter of insurance is rather unnecessary. But with different types of policies, ranging from health insurance to car insurance, house insurance, life insurance and even commercial insurance, it is possible to sometimes feel a little bit lost in space
If in doubt about the range of insurance products and services available, all you have to do is pick up the telephone and contact your local insurance company. A skilled and professional insurance agent will be able to answer all your questions and assist you in making the correct selections. It might be a good idea to have a list of questions and requirements ready, so that you can provide the insurance agent with as much information as possible.
Insurance can typically be categorized in two main categories: short term insurance and long term insurance. An example of short term insurance is car insurance where you only have to pay the policy for as long as you drive the car. Once you sell the car you cancel the policy, as easy as that. Long term insurance on the other hand requires a longer commitment. An example of a long term insurance policy is life insurance. A life insurance policy can be obtained at a young age and the policy’s term is usually calculated on an individual’s life expectancy.
Another type of insurance that tend to be very confusing is health insurance. Many people are under the impression that health insurance is just another term for a medical aid. This is in fact not true. Without going into too much detail it is important to understand that a medical aid has certain limits and restrictions. A basic medical aid for example, will consist of a “savings account”. Once the savings account is depleted, the medical aid is basically exhausted and your medical bills, medicine etc. will be for your own account.
Health insurance policies are slightly different and can almost be described as a combination of a medical aid and an insurance company. Similar to a medical aid there is money available in the policy so that an individual can pay for medical expenses, but it will generally make a lump sum available to the policy holder or the beneficiary, rather than just covering doctor’s bills and medicine. In other words, to make sure that you are properly covered you will in fact need a medical aid, plus some type of health insurance.
Different types of health insurance policies can be obtained and it is once again important to discuss your needs and requirements with an insurance agent or broker. While some individuals opt for critical illness cover, other individuals prefer cover in the event of work disability and others might be more interested in accidental death cover. Make sure that you have adequate policies in place as early as possible – you never know when you might need it the most.