Having multiple protection should work to your advantage with Group Health Insurance Dallas TX. You should be able to have the benefits not paid by one company paid by the other. Unfortunately, the industry is found a way around this equitable approach for coronation of benefits. When they often do is insert a birthday rule into the group insurance contract. The effect is to deny many insured the total coverage that two insurance policies will give them. We’ll let John and Jan Richards of Richmond, Virginia describe how the birthday clause deprived them of health insurance benefits. They write:
Group Health Insurance Dallas TX
The good news about risk is that the chance of incurring a loss on a given day is usually extremely low says Group Health Insurance Dallas TX. The bad news is that when a loss does occur, its costs can be very high. This dual character of loss is what makes insurance possible and profitable.
When you purchase Group Health Insurance Dallas TX, you are in essence making a trade. On one hand, you accept a fixed loss, which is the money you pay to the insurance company. It is fixed because you know how much you are going to pay before you write the check. These payments are called premiums.
In return for your premiums, the insurance company agrees to accept your risk of loss within the subject matter of the insurance policy (auto, life, health, etc.), in the statistically unlikely event that a loss is incurred. The potential loss to the insurance company from an incident covered by the police is much higher than the fixed loss of your premium. Thus, you are trading a small but defined loss in order to get the insurance company to absorb an unknown but potentially larger future loss. This agreement is formalized in a written contract says Group Health Insurance Dallas TX.
When this contract, known as an insurance policy, has been agreed upon, it is said that the” risk has been spread” from the few (each individually insured party) to the many (all of the policyholders within the insurance company). All policyholders pay for individual losses, because the money to pay claims comes from the earnings of the insurance company. Where does the company earn its money? From the premiums and the income earned from investing them. Group Health Insurance Dallas TX says the premiums paid by the many fortunate individuals who did not incur a loss have gone, in part, to pay for the losses of the unfortunate few who did. And the insurance company gets to keep the rest as its income to pay for the cost of overhead and to provide it with profits.
