Defining Terms In Your Health Insurance Policy

Protecting your financial security in times of crisis is the purpose of insurance.
Health insurance, particularly, is an incredibly important investment because, while you cannot predict medical catastrophes, you can prevent draining your bank account by purchasing a health insurance policy that fits your needs.

Need a little help defining some of those words in your health policy? Look no further.

Accidental Death Insurance - This type of insurance is paid if the death of the policyholder results from an accident.

Acute care - Expert attention that is required to restore a person to good health.

Aftercare - Specialized patient services that are necessary following hospitalization or rehabilitation.

Ambulatory care - This type of outpatient treatment does not require hospitalization.

Ancillary - supplementary services (beyond room and board fees)

Benefit package - a detailed description of the policyholder's coverage under the terms of the health insurance contract

Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) - This law gives employees of companies with more then 20 employees the guarantee of group medical coverage at the company's expense for a period of time.

Continuation - Allows employees that have been terminated to continue their group health insurance coverage under certain conditions.

Covered Expenses - Medical costs incurred when the policy holder qualifies for reimbursement

Newspaper policy - type of limited health insurance sold by newspapers to maintain or add to circulation

Provider - individual or group of individuals that provide health care service

Understanding these definitions will put you a few steps closer to deciphering your health insurance policy. If there are specific questions you have regarding your health coverage, always contact your insurance provider. They will be more than happy to discuss any questions you may have. Health insurance is a financial issue you cannot neglect.

While you cannot predict medical emergencies, you can prevent financial misfortune in the event of medical emergencies by purchasing health insurance and understanding your benefits and limits.

See additional Glossary of Terms for more information and terminology.