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Health Insurance – Importance And Benefits Of Having One

Health Insurance – Importance And Benefits Of Having One

by December 30, 2019 Insurance

Having a health insurance serves as an edge and hedge against financial and health crises that you may experience in the following days or in a couple of years. This protects you and your family when someone gets sick, suffers from a chronic condition which would require long-term care, for accidents and other medical emergencies, or contracts illnesses that would require expensive treatments or surgeries.

Health care is an investment not just for your finances or assets but for your overall health. It keeps you and your loved ones protected against financial difficulties when the inevitable arises. You may feel that you don’t need health insurance now but you will definitely need it in the future. This will prevent you from experiencing stressful financial situations when that need arises.

What is Health Insurance?

Health is worth your investment – always. A health insurance policy refers to a contract or agreement made between an insurance carrier and a policy holder which is intended to protect the latter against unexpected and high health care costs in the future.

This provides a guarantee of compensation in the event that the policyholder would get sick or get involved in an accident and would require hospitalization and treatment. So, even if you are paying the monthly premiums, co-insurance, co-payments, and deductibles, the total for that would still be less than what you are supposed to be paying in full or the out-of-pocket costs.

Health insurance coverage may be provided thru a private entity or business, non-profit organization, or the government. The Specialty Insurance Company is able to determine the costs and your coverage by looking at the estimates of medical expenses in a particular population and then spreads the risks amongst the policy subscribers.

More so, there are several public health programs which are funded by the government or state-run such as Medicaid, Medicare, and SCHIP which provides additional medical coverage or health insurance benefits to individuals who belong to a particular group such as those with disability or the elderly.

Without a health insurance plan, health care providers may request a payment plan agreement or advance payment for services which may cause undue financial strain. These insurance companies would normally have tie-ups with primary care hospitals that would provide cashless treatments to the policyholders.

If in case the provider has no tie-ups with your selected hospital then they would just reimburse the treatment and hospitalization costs. More so, the government also provides additional health insurance thru deductions on the income tax.

With a health insurance in check, you don’t just provide yourself and your loved ones with financial security but also ensures overall physical and emotional health protection.

A health insurance would normally cover medical tests, doctor consultation fees, hospitalization expenses, ambulance fees, and even post-hospitalization expenses depending on your insurance coverage.

Importance and Benefits of Having a Health Insurance

Medical expenses can wring you dry. Healthcare is very expensive especially for private care. So, if you happen to be the breadwinner of your family and get sick without any health insurance, you may experience financial drought and this can be very stressful.

Noone really plans to ever get hospitalized or get sick but you may definitely need the health insurance protection at some point in your life.

Peace of Mind in Case of Future Medical Needs

With health insurance, you are protecting your greatest asset – yourself. It does give you peace of mind that you are insured or protected just in case you would need treatment and hospitalization in the future. This also provides your family and loved ones the security that you would need just in case something unexpected happens.

Having health insurance eliminates stress and concerns knowing that you can benefit from low-cost and cashless medical services in case of emergencies or life-threatening situations. Out-of-pocket costs or financial distress would then be eliminated as you have already paid up for the part of that in advance.

Medical Protection

You have paid in advance for health or medical protection to avoid any financial burden in the future for you and your loved ones. Having health insurance gives you the confidence and assurance that you will receive the highest quality of medical attention and treatment with leading hospitals and doctors that have tie-ups with your insurance company.

Cost-Effective Contingency Plan

Paying for your health insurance at the earliest time possible helps you grow your savings. So, if you have acquired health insurance either thru an employer or individually, then you can allot your other income and savings to other expenses or even for business investments. You also get more savings from taxes with health insurance coverage.

Consistency in Medical Checkups or FREE Preventive Care

Having regular checkups and preventive care is a must especially if you prioritize your health. To be fully functional and healthy, you would need monthly or annual checkups to ensure that your state of health is in check. With health insurance coverage, you are assured of consistent and cashless checkups and preventive care that would avoid draining your finances. Essential health benefits are included in your health insurance package aside from the medical emergency treatment or hospitalization benefits.

Protects Your Finances

Lack of cash at some time in the future may be detrimental to your life and general health especially when faced with real-life medical emergencies. Paying for your health now provides you a guarantee of not having to worry about financial constraints just in case something happens or you get sick with a chronic or life-threatening disease in the future. Having health insurance covers for a huge amount of health expenses which can help you financially especially because long-term treatments and hospitalizations can really put a huge hole in your finances.

People without a health insurance policy may not have the financial buffer or protection in case of sickness, disability, or accidents. You get exposed to looming high costs of medical care if you don’t get health insurance now.

No Limits to Healthcare

You get to enjoy limitless or lifetime healthcare protection that covers essential health benefits plus more depending on your health insurance package. In addition, you also get to pay a reduced amount once you meet your insurance plan’s deductible. Plus, there is an out-of-pocket maxiumum that you have to pay regardless of how much covered care you would incur in a plan year.

People without a health insurance would normally pay twice as much for healthcare or medical services. This puts a huge toll on your finances just when you might be sick in a hospital bed or unable to work anymore to cover for health expenses. With a health insurance package, you get even higher savings for expensive treatments or medical services. Plus, you can even save a lot on your insurance even if you haven’t reached your deductible yet just by having a health insurance plan.

If in case you choose not to have health insurance coverage in 2019 and in the coming tears, the Individual Shared Responsibility payment or the penalty does not apply. You also won’t need any exemption for that. However, if you are looking to apply for “catastrophic” health coverage then it would be necessary to apply for an exemption.