Life and health benefit plans can be life-saving for many people. However, these insurance plans have some limitations. Typically, companies create their criteria for what they will not cover. When you sign up for your insurance services, you will be given a complete list of policies and plans that will give you an overview of what your insurance will cover. The contract will show some exceptions to life and health insurance.
Most individuals define health and life insurance as a designated beneficiary that pays a specific amount of money on an emergency event that can bring life threats. But emergencies can happen anywhere and at any time, making an insurance policy vital especially if you want to take care of a loved one that is quite out of reach. According to https://www.now-health.com/en/countries-we-cover/singapore/, a policy can be purchased by someone other than the person being insured as well. This, in particular, should be taken advantage of by people who have loved ones far away, whether in another city, a different state, or even in another country. They can purchase insurance policies on their behalf and can get a little more peace of mind in the process.
Before we talk about the limitations of one’s insurance, let us view the different types of policies.
Types of Insurance Policies
Typically, there are two main types of life and health insurance: permanent and term. Term insurance is a beneficiary that covers individuals for only a specific amount of time. During this specific period, if the individual comes across an emergency or passes away, their dependents can get access to the insurance payout. As comparatively, permanent insurance comes with no specific time limit and can payout once the individual comes across a life emergency or dies.
Regardless of these policies, there are some limitations as well.
The Limitations of Insurance
Pre-existing medical conditions
Most health insurances cover only a specific waiting period of six months to one year for a pre-existing condition. However, conditions like diabetes or asthma may not be covered for a lifetime. Some companies will only cover for these conditions if there is a consistent financial input, but that is a small amount every month. In other cases, if you are not employed, the insurance will not cover you.
Typically, health insurance does not cover cosmetic surgeries. The main reason can be that many surgeries can go wrong and any emergency recovery cases can cost up to thousands of dollars. The only case companies cover for cosmetic surgeries is when it is for facial reconstruction purposes due to an injury or defect from birth.
Most health and life insurance companies will not cover alternative medical treatments or therapies. Alternative medical treatments are typically used as non-traditional or traditional ways of treating a health issue in place of medicines that are advised by doctors. These treatments can include yoga, massage, biofeedback, acupressure, cupping, and acupuncture. Even chiropractic treatments, which are performed by doctors, do not fall under insurance plans as they are not medicated treatments. The reason is that these methods are considered as experimental or non-traditional by many health companies.
Private health care
Health care that is performed at home by a family member or by a privately hired nurse is not covered by most insurance companies. Whether it is due to lack of mobility or other reasons, around 1.4 million individuals decided to stay at home for private treatment. These treatments can last for about 40 or more days. Most companies do not cover this as the expenses can often go up very quickly.
Mental health care
While some insurance companies cover mental health treatments that involve drug rehabilitation, they will only ensure emergencies related to substance abuse if it is caused by mental illness. However, you will need to get a medical certificate by a doctor during the sign-up process. This insurance type can also be covered by many employers who provide their employees with an employee assistance program.
Common medicine exclusions
In addition to surgeries or medical procedures, many exclusions can also involve the purchase of certain drugs. Just like how companies do not cover cosmetic surgeries, they also do not cover medications that can be used for cosmetic purposes. Other exclusions include medications for non-traditional treatments.
Some medications that are not covered can also include supplements for hair growth, strong nails or for getting clear skin. Insurance plans also do not cover supplements for food or other experimental drugs. These can also include medications for elective abortions. They are mostly not covered by many companies due to political reasons.
When deciding to buy an insurance plan, it is always important to look over the amount of coverage and limitations in your preferred plan. Companies usually have multiple limitations to what they will agree to cover. In addition to the limitations above, there are also restrictions for loans borrowed from the company. The reason is that many times this borrowed amount needs to be paid back with the declared interest.