Medical Expense Insurance

Basic Insurance Questions Answered
Why Health Insurance?

Health expense insurance policies allow people to transfer future unforeseen medical expense risk to an insurance company.

An agent may focus on any one of these types of policies or work as a generalist who provides many different products to an individual customer.

Payment of Benefits

Benefits may be paid directly to the insured on a reimbursement basis, or the insured may assign benefits to be paid directly to the health care provider.

Basic Hospital, Medical, & Surgical Insurance

Basic medical insurance consists of mono-line coverages, which means it covers only one type of medical expense. It was the primary form of medical insurance sold for many years. Coverage is limited and set low (such as $10,000) for any given situation. When benefits are paid according to the amount listed on the schedule, the plan is called a scheduled plan. While there is usually no deductible or co-insurance amount, the basic/scheduled amount is generally less than the usual and customary charge for that service in that area and the patient has to pay the difference themselves. The maximum dollar amount and the schedule are determined by the policy.

Examples of Basic Medical Insurance are:

Medical Insurance Continued

Providing Medical Insurance Policies

Individuals interested in offering medical insurance coverage should consider looking into one of our many Health Insurance Licensing courses.


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