An Introduction to Medical Insurance Companies:
A company which underwrites medical insurance contracts for indemnification of financial benefits against unforeseen circumstances such as illness or accident or death is called a medical insurance company. Most medical insurance companies provide versatile options that help insurance seekers to create a personal insurance plan that suits his/her financial needs in the optimum possible way.
Working of a Medical Insurance Companies:
The working of medical insurance companies is similar to other companies. Medical insurance companies too have a source of revenue and incur costs and the excess of revenue over costs is termed as profit of medical insurance companies. However the calculation of revenue and costs is slightly more complicated than usual.
The source of revenue for medical insurance companies is the insurance premium that the insured pays to the company. This mainly depends on the insurance plan under which the person is insured and secondly on the condition of his health which is determined by his way of life. This calculation is done by professional actuaries and the way of computation may vary. People similar in age, sex and health are grouped together and higher is the probability of death in a period of time, higher is the premium.
The costs comprise of reimbursement of claims besides operating costs.
Medical insurance companies rating is determined by long term financial stability, a sound performance and good track record in managing investments.
Following are some of the
Medical Insurance Companies active in US:
Aetna
New York life
Aflac
Aegon
United Health Care
For further information one may view sites like about.com, ezinearticles.com, aetna.com.