Types of Health Insurance Policies That One Must Know About

The market is predominated with several insurance policies-life, auto, health and the like. But to choose one among the best is what counts as a real challenge. More often than not, one might find himself/herself amidst a dilemma when it comes to choosing a particular health insurance policy for the first time.

Types of Health Insurance Policies That One Must Know About

There are several types of health insurance policies in the market, and it is imperative that you choose the right one to be able to make the most out of your coverage. Therefore, we thought it would be just the right thing to bring together an article that discusses the types of health insurance policies, so that you can choose the most appropriate one depending on your situation.

Traditional Health Insurance:

As the name itself suggests, the traditional health insurance policy is the regular one where you buy a cover that promises to cover you up to a certain amount against a monthly premium. The amount of the monthly premium depends on a number of factors- your age, family history of illnesses, medical history of treatments and the like.

This type of medical insurance is the most sought after because of the ease with which it can be purchased and maintained. The traditional health insurance also does not have many complications associated with it, and it is far from being complex to be comprehended. Therefore, if you are worried about which health insurance policy could do you justice, especially when you are buying it for the first time, the traditional health insurance is your safest bet.


The Fee-for-Service type of health insurance policy is the type which gives you the complete agency to choose doctors, services and hospitals on your own accord. Think of it as the type that you can customize to fit your bill.

This type of a health insurance policy provides a lot of liberty to the people who are looking for more room to experiment with the terms and clauses mentioned in the policy. To be able to make better and wiser decisions regarding health insurance, you must compare health insurance quotes and then settle on one policy.

Managed Care:

Managed Care is not essentially a new concept, though not many people know much about the same or would want to buy this form of a health insurance plan. The managed care form of health insurance, like the name suggests, has an arrangement that goes on between the insurer and a carefully selected network of health care providers. This type of health insurance also provides the policyholder with several incentives that might not be known widely. Therefore, if you are looking for a precise health care insurance with perks that you can avail from time to time, the managed care health insurance policy serves as the most appropriate.

Preferred Provider Organizations:

The Preferred Provider Organisation is much similar to the managed care plan but with a catch. Unlike managed care, the PPOs provide their policyholders with the opportunity to avail health insurance within a managed network but at a much lower cost. The other features of the Preferred Provider Organisation stay almost the same as the managed care health insurance policy.


Health insurance policies are like blessings that everyone needs in their lives. It is impossible to bear the cost of treatment, especially for terminal afflictions like that of cancer. All our life’s savings and earnings might not suffice when it comes to providing quality treatment to our loved ones or for ourselves. Health insurance policies step into the picture as a welcome relief in such situations. Therefore, it is crucial that we know which health insurance policy to choose and which ones to avoid.

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Lara Herrington
With over 12 years of experience, she is a proficient content writer and editor specializing in a diverse range of subjects, including technology news, country news, arts, science, travel, and automobiles.


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