INSURANCES
DEFINED
INDIVIDUAL
| GROUP | LIFE
|
MANAGED
HEALTH CARE
| PPOs
| HMOs
Individual
Policies
A health or life insurance policy that provides coverage
for an individual person and, in some cases, his/her family members,
as opposed to a group policy that provides coverage for a group of
individuals.
Group
Plans
An insurance contract that covers an affiliated group
of individuals that share a common employer, trade association, or
other type of organization.
HEALTH
INSURANCE
MANAGED
HEALTH CARE
| PPOs
| HMOs
Managed
Health Care
Most Americans have some kind of managed-care plan
such as an HMO or PPO.These plans provide comprehensive health services
to their members and offer financial incentives to patients who use
the plan's providers.
PPOs
PREFERRED PROVIDER ORGANIZATION:
A combination of traditional fee-for-service and an HMO. When you
use the doctors and hospitals that are part of the PPO, you can have
a larger part of your medical bills covered. You can use other doctors,
but at a higher cost.
HMOs
HEALTH MAINTENANCE ORGANIZATION:
A prepaid health plan with emphasis on preventative medicine. Doctors'
visits, hospital stays, emergency care, surgery, checkups, x-rays,
lab tests and therapy, are provided by participating health care providers
for a designated monthly "premium".
LIFE
INSURANCE
TERM
| UNIVERSAL | WHOLE
Term
Life Insurance
A form of life insurance which provides coverage for a specified period
of time and does not build cash value.
Common
policy periods are one year, five years, 10 years or until the insured
reaches age 65 or 70. The policy doesn't build up any of the nonforfeiture
values associated with whole life policies.
Universal
Life Insurance
A form of permanent cash value life insurance that provides both life
insurance protection and a savings component with a guaranteed minimum
rate of return, plus an additional return when the insurance company's
investments perform well.
Other
key features include the ability to adjust both your premium payments
and the amount of your insurance coverage.
Whole
Life Insurance
A life insurance policy that remains in full force and effect for
the entire life of the insured, provided that premiums are paid.
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