Many people underestimate the importance of health insurance until they experience a medical emergency. With healthcare costs skyrocketing daily, the need for a fallback plan becomes pressing. Unplanned medical bills have left many bankrupt and unstable.
However, policyholders have no business carrying any financial burden that may arise from getting healthcare services. Depending on the plan they purchase, a huge part of their medical expenses, including the cost of preventive care, becomes the insurer’s responsibility.
Sometimes, this contract offers a safety net for both their health and finances. You may think of this article as a sign you need to purchase a health plan if you don’t have one.
What is health insurance?
Health insurance is the policy you purchase from an insurance company, which makes them foot your health care bills. Policy providers can offer coverage for all medical-related expenses in exchange for a specified premium amount.
When you are insured, it means you are eligible for coverage or reimbursement from your policy providers. Some people get insurance as part of their workplace benefits, while others make insurance plans for themselves.
Also Read: Health insurance plans in the US
However, your coverage option determines the cost of your policy. If you are a low-income earner, you can opt for the government-subsidized option, purchase a group plan, or buy independently.
To take advantage of a medical plan, one must understand the various coverage options available to them. Before making a decision, you should weigh your options or consult a professional.
Types of health insurance plans
When choosing a health policy, you must consider your medical needs and financial capacity. This helps make a choice tailored to your needs. Luckily, there are a ton of policy types you’ll come across in search of health insurance. They include;
- Family health insurance: As the name suggests, this insurance covers an entire family. This allows every member protection under one policy and is usually preferred for its subsidized cost and easy management.
- Public or government health insurance: This is be the most popular type of insurance in the United States. It is sponsored by the government to cater to the healthcare needs of citizens. Some popular examples include Federal Medicare, children’s health insurance, and Medicaid.
- Individual health insurance: This provides a single policy per individual. Most times, individual plans are customized to fit the policyholder’s budget. In addition, it covers basic medical expenses and preventive care costs.
- Group health insurance: Sometimes, a group of people can decide to purchase a single policy to cover all members. This type of insurance is often provided by employers to serve all their employees. It also saves costs and caters to relevant health needs.
Senior citizen’s health insurance: This plan is available to retirees or individuals over 60. Due to their age, they may be susceptible to several health conditions or have pre-existing conditions. It may cost more than other coverage types.
Benefits of health insurance
- Financial stability: Health insurance saves you from incurring extra expenses that may cripple your finances.
- Reimbursements: Insurers offer to pay back whatever you spend on hospital expenses. This may cover doctor’s visits, surgeries, or preventive care.
- Encourages good lifestyle: Before full benefits kick in, there are out-of-pocket costs for every claim you make as a policyholder. This forces policyholders to take good care of their health to avoid unnecessary claims battles.
- Tax benefits: Most insurance plans have some attached tax benefits for premiums paid.
Conclusion
In many developed countries, staying without any form of health insurance may attract severe penalties. You may also expose yourself to financial burdens and risks if a medical emergency occurs. This article explores different types of health plans to help you make sound decisions.
