Insurance

Health Insurance – What is it, and Why Do You Need it?

Imagine you’re rushing to the nearest hospital due to your wife’s sudden heart attack. You couldn’t see this coming from a mile away since she exercises daily while adhering to a well-balanced diet.

After conducting a serious of tests, the doctor concludes your wife needs to undergo congenital heart surgery to correct a genetic heart defect.

The surgery is scheduled for next month. However, you cannot afford health insurance premiums due to financial hardship, and your emergency cash fund can only cover so much. The cost of the surgery is overbearing, and you’d like to avoid depleting your entire savings all at once.

Similar to life or car insurance, health insurance is designed to protect one’s financial assets from taking any unnecessarily hard hits. However, families become virtually bankrupt every day due to unforeseen medical emergencies or ongoing treatments.

It seems health care costs are continuing to climb, making insurance premiums unattainable for many. But, there are several reasons to consider purchasing health insurance for yourself and your loved ones if you haven’t already.

What is Health Insurance?

Health insurance involves purchasing an insurance policy guaranteeing the provider will cover various medical costs for the policyholder and possibly any dependents in exchange for payments.

These medical costs include preventative care, such as doctor’s visits or tests, in addition to certain medical procedures or treatments.

Like life or car insurance policies, the insured is expected to pay an outlined premium and to comply with any specific policy terms or conditions in order to take advantage of coverage benefits. In reality, it’s a straightforward system of give and take where both parties benefit in some capacity.

For instance, policyholders and any dependents receive coverage for sizeable medical costs, and insurance premiums help fund the company’s day-to-day operations or overhead costs.

Also, the more individuals purchasing health insurance from providers, the more rates and discounts the provider can negotiate with their extensive medical networks. This results in a more competitive market, and therefore you’ll qualify for more affordable coverage in the long run.

How Does Health Insurance Work?

Certain health insurance plans may require the insured to seek medical care from a designated network of licensed health care providers and hospital systems. Many carriers often ask policyholders to select a primary care physician for themselves and their family.

If the insured visits a health care provider not included in the carrier’s network, either the policyholder may incur additional fees or the insurance company will refuse coverage outright.

It’s important to note that health insurance providers do mandate coverage exclusions that are often based on the type of medical treatment or condition in question.

Although policyholders must seek preauthorization or prior approval for certain medical procedures, most health insurance plans will not cover cosmetic surgeries.

Some plans may choose to cover mental health treatments or drug rehabilitation programs, but alternative medical practices are often not included, such as acupuncture or massage treatments.

There are also often distinct coverage limits to keep in mind. In other words, in keeping with good practice, insurance companies generally guard against liability risk through disclosing a maximum coverage limit.

These limits can range from $500,000 to even $1 million, but some insurance carriers work with clients’ requests to raise a select coverage cap on a case-by-case basis.

If you’re working with a private insurance company, you can always ask about different riders and how those provisions could further customize your coverage.

Why is Health Insurance Important?

For individuals without car insurance or unable to purchase a vehicle, finding a way to get around town isn’t that hard. There are several alternate forms of transportation to choose from these days, such as carpooling, taking a bus, or ridesharing services.

But, when your daughter unexpectedly experiences a second or third-degree burn, visiting the doctor becomes a need, not a want. However, not everyone is in need of a traditional health insurance policy.

The affluent can cover medical expenses with ease using their own allocated funds. Research has even suggested that the higher the income bracket, the healthier the individual. As the saying goes, the wealthier you are, the healthier you are.

On the other end of the spectrum, individuals who can’t afford health insurance premiums often delay seeking medical attention or treatments to avoid mounting medical bills.

Those 65 years of age or older or with certain disabilities can take advantage of federally funded Medicare benefits, while low-income families and pregnant women, among others, often qualify for health insurance coverage through state-administered Medicaid.

It’s also important to note that individuals or families can face unwanted tax penalties for maintaining an uninsured status…….Read More>>

 

Source:- cashmoneylife