Insurance Guide

In insurance, accidental death and dismemberment (also known as AD&D)) is a term used to describe a policy that pays additional benefits to the beneficiary if the cause of death is due to a non-work-related accident. Fractional amounts of the policy will be paid out if the covered employee loses a bodily appendage or sight because of an accident.[1][2] In the event of accidental death, this insurance will pay benefits in addition to any life insurance held. [3] Death by illness, suicide, or natural causes is generally not covered by AD&D. Additionally, AD&D generally pays benefits for the loss of limbs, fingers, sight and permanent paralysis. The types of injuries covered and the amount paid vary by insurer and package, and are explicitly enumerated in the insurance policy. Read the rest of this entry »

Insurance companies use the term “ adverse selection ” or “ adverse selection insurance “  to describe the tendency for only those who will benefit from insurance to buy it. Specifically when talking about health insurance, unhealthy people are more likely to purchase health insurance because they anticipate large medical bills. Those people are adverse selection. On the other side, people who consider themselves to be reasonably healthy may decide that medical insurance is an unnecessary expense; if they see the doctor once a year that’s much better than making monthly insurance payments. Read the rest of this entry »

Historically, HMOs tended to use the term “health plan“, while commercial insurance companies used the term “health insurance”. A health plan can also refer to a subscription-based medical care arrangement offered through HMOs, preferred provider organizations, or point of service plans. These health plans are similar to pre-paid dental, pre-paid legal, and pre-paid vision plans. Pre-paid health plans typically pay for a fixed number of services (for instance, $300 in preventive care, a certain number of days of hospice care or care in a skilled nursing facility, a fixed number of home health visits, a fixed number of spinal manipulation charges, etc.) Read the rest of this entry »