Life is precarious and the world is unpredictable. Thus, we all need extra protection and safety to tackle unforeseen events. In such a context, health insurance comes to the rescue. Quite understandably, health insurance is not an option but a necessity that cannot be shunned. A health insurance plan is primarily designed to cover an individual financially in case of a medical emergency caused by illnesses, accidents and hospitalizations.
Thus, it is not simply a safety net that protects your health, but also a safeguard for your financial future. Nowadays, many people understand the significance of health insurance but yet more knowledge and information needs to be disseminated so that every citizen goes the extra mile to purchase one.
What is Health Insurance?
Before delving into the many merits of health insurance, let us understand what a health insurance policy is. To put it simply, a health insurance plan is an agreement between a business and a customer wherein the former offers to cover all or part of the insured person’s medical expenses in return for a monthly fee. Usually, the contract has a tenure of one year, during which the insurance company has to pay specific expenses related to illness, pregnancy, injury or preventative care.
In the United States, about half of the population has health insurance coverage as an employment benefit, with the premiums being partially covered by the employer. Likewise, freelancers and self-employed persons can buy health insurance directly on their own.
Also read: 9 Ways to Save Money on Health Insurance!
Seniors, disabled persons, and those with End-Stage Renal Disease or ALS eligible for Medicare-subsidized treatment. However, low-income families qualify for subsidized Medicaid.
Importance of Health Insurance: Top 9 Reasons
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Accessibility to an All-Inclusive Healthcare
The first and the most pertinent benefit of a health insurance policy is that it provides access to comprehensive healthcare services. It encompasses an array of medical requirements, such as regular and timely check-ups, expert consultations, procedures, hospital stays, prescription drug expenses, and more. In other words, health insurance ensures that you do not have to pay astronomical amounts from your own pocket to receive essential and basic medical care.
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Hospitalization Cost
Hospitalization costs are covered by a health insurance plan, whether they are related to a disease or an unintentional damage. To begin with, a health insurance plan covers for the costs incurred while you are taking treatment in a healthcare facility for any illness.
Also read: What is Insurance and the 7 Major Types of Insurance!
Similarly, any expense incurred for treatment due to an accident is also covered by health insurance plans. Furthermore, procedures that do not require overnight hospitalization are also a part of health insurance plans.
This examples of the covered expenses include –
- Room charges
- Doctors’ fees
- Intensive care unit (ICU) charges
- Surgery charges
- Diagnostic tests costs
- Room rent and more
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Pre-existing Condition Coverage
Thirdly, pre-existing medical conditions are also frequently covered by health insurance plans, which enables people with continuing health problems to get the care they need. Thus, they do not have to worry that their medical history might prevent them from receiving the right coverage.
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Pre-and Post-Hospitalization Costs
A hospital treatment is usually succeeded by a series of visits to the doctor along with other diagnostic tests. These expenses are also covered by certain health insurance plans. Health insurance plans, for instance, could cover the costs of a hospital admission for treatment, but they also take into account the fees paid for a pre-hospital stay for a certain number of days, say 15 to 60 days.
Also read: Does Your Insurance Cover An Air Ambulance- Everything You Need To Know!
Likewise, the policy might cover charges of follow-up visits, medicines, etc, once you are discharged from the hospital. Some insurance plans pay for consequent expenses ranging from 30 to 90 days from the time the patient is discharged from the hospital.
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Financial Stability
Medical expenses can burn a hole in anyone’s pocket but the burden is considerably lessened when you have already purchased a health insurance policy. By paying for only a portion of the total medical bill, you can dramatically mitigate your financial hardships. The advantage becomes all the more pertinent when you are dealing with unanticipated medical emergencies or chronic diseases.
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No Claim Bonus
Health insurance plans not only cover medical costs of people who have to seek hospitalization for illnesses or accidents, but also reward and compensate policy holders who do not make a claim in the policy’s tenure. This is known as no-claim bonus and individuals are rewarded by way of increasing their insurance cover sum insured without levying any additional premium charges. You can earn a no-claim bonus of up to 100 percent of the original sum insured in the health insurance policy.
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Access to Preventive Care
The seventh reason that makes health insurance important is that you get access to preventative health care. Preventative care services include regular check-ups, screenings and vaccinations. These facilities are intended to identify health problems even before they become something serious and more expensive to treat. Without health insurance, many people tend to ignore preventative care because of the costs, which can culminate in more serious health problems.
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Improved Health Outcomes
Having health insurance can lead to better medical outcomes. When you have access to high-quality medical care and treatment, you are more likely to recover from illness or injury. People without health insurance are likely to delay seeking treatment, which can aggravate their health conditions. Similarly, health insurance also offers access to specialized care and treatments, which may not be available without insurance.
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Employer Benefits
Last but not least, health insurance can also be beneficial for organizations and employers. As we have already mentioned, many employers provide health insurance as a benefit to their workers. This serves as a precious perk that can attract and retain talented employees.
Wrapping It Up
So, there we have it, the nine reasons that make health insurance incredibly important and beneficial in today’s day and age. A health insurance policy serves as an invaluable safety net that protects you and your loved ones.