Indemnity insurance is gaining huge popularity over the past few years but there are many who are not yet aware of this insurance. In this article, we would be discussing about indemnity insurance and why one needs it.
Indemnity Insurance – An Overview
Indemnity insurance is the coverage that is provided by the insurance companies to the insurance holder for the actual expenditures or economic losses, limiting up to the amount mentioned in the insurance. Often the insurance companies want to have a document proof of the actual expenses incurred by the policy holder before they can settle the indemnity insurance claim.
Indemnity health insurance is by far the most popular form of indemnity insurance and the primary objective behind this insurance is to reimburse the policy holder a substantial part of the actual expenditures on health care. The things that one can expect to be covered by the indemnity health insurance are hospital stay, doctor’s visit and chronic care management. There are several benefits of availing indemnity insurance and the prospective customer needs to find out the advantages as well as the downsides.
Here are some of the features of of Indemnity Insurance:
High level of Flexibility – This insurance policy provides no restriction on the healthcare or the doctor one needs to visit for their treatment. The policy holder is free to visit any hospital or doctor of their choice. Thus, the policy holder has the liberty to take their own decisions without having to worry about their health insurance.
Higher Premium costs – The cost of the premiums is higher than the conventional health insurance as they give policy holders the liberty to choose their medical facility and the doctor. There is no need to adhere to a particular healthcare group and policy holders can decide to change their doctors if they are not satisfied with the treatment.
Deductibles – The policy holder needs to pay a fixed deductible in a year for the policy to kick in. The general co-pay is 20 percent of the total expenses.
Indemnity insurance is beneficial for those who incur a lot of expenses on account of their health or property. They can actually get the entire amount reimbursed from the insurance companies. There are several companies in the US that offer indemnity insurance but only a fair comparison of their features and premium rates would give an idea about the best policy in the market.