Why do we need Health Insurance?

Science and Technology dominate the world in which modern man lives, and this has undoubtedly revolutionised our lives and our way of living. We can however not predict what life has in store for us despite all the progress in the scientific field.

The medical field has been subjected to a lot of progress but it can nevertheless not prevent anyone from losing one of his vital membranes, his eyesight, from being partially or completely paralysed. What is within our reach is to secure our present and future. There can be no other way round except through a health insurance plan.

What is a health insurance plan? Health insurance protects people from financial loss caused by the high cost of medical care. It is simply a policy, which covers someone and in case of any health related issue, (such as an illness, loss of a hand, paralysis...) the insurance company pays an agreed sum of money to the person concerned. Insurance can make the financial risks associated with healthcare more manageable. The insurance plan caters both for long-term and short-term diseases. Payment is done immediately to either the medical institution where the person is being treated or to the individual covered by the insurance policy.

To be covered by a health insurance is very simple. The first step is to approach your trusted insurance company, which will propose to you different health insurance policy schemes and you only have to decide upon the one you think, is appealing to you depending on your financial status and the sum of money you want as your insured amount. Individuals make regular payments to the plan rather than having to pay especially large sums at any one time in the event of sudden illness or injury.

The company can offer to you different packages such as the ‘Fee-for-Service’ whereby the insurance company pays to people who have opted for this plan a limited amount of money depending on their insured amount...Another type of package is the ‘Health Maintenance Organisation’ (HMO). This is a pre-paid health plan where you are required to contribute on a monthly premium and in exchange, the HMO provides you with comprehensive health care assistant. The advantage of the HMO is that you are given a card, which replaces the claim forms that you have to fill for the insurance company to consider your health expenses. We also have the ‘Point of Service’ plan. Under this plan, members can refer themselves outside the plan and yet get coverage. The plan pays all or most of your bills (medical institutions). A remarkable package is also the ‘Preferred Provider Organisation’ (PPO). This is a combination of the ‘Fee-for-service’ plan and the HMO plan. During any visit to the hospital, you only have to present an electronic card; there is no claim form involved. All you need to do is to make same co-payments for each visit while the insurance company will settle the remaining amount. Moreover, the PPO also covers for preventive care; it has qualified expertise who gives you handy health care tips in order to stay in good health.

Many are those people who are not aware of the necessity of a health insurance plan. Through this scheme, you are covered by a 24´7 health insurance policy. At any time, you are ill and you report to a medical institution, the policy becomes effective. The insurance company pays either the whole of your medical expenses or part of it.

Payment by the insurance company is made either by an electronic card, which is given to you when you sign your health insurance policy or you have to fill up a claim form only then will the insurance company take into consideration your medical expenses and your state of health. It is worthwhile noting that payment is done within a certain time limit. The main advantage of a health insurance policy is that you can follow your treatment carefree and the insurance company takes the necessary measures to settle the medical expenses involved.

The importance of a health insurance policy is to be seen the moment someone is ill and s/he cannot settle the hospital bill immediately. If s/he is assured by a health insurance policy, the insurance company automatically takes care of all the expenses involved in the treatment. Since no disease is can be predicted, one cannot be prepared financially to meet the medical expenses at the particular moment one falls ill. Therefore, instead of always carrying a sum of money for treatment, the person can through the medical plan offered by the insurance company pay for the expenses in a sure manner.

A health insurance scheme is also a wise way to secure one’s future. As we are unaware of what awaits us in future, one cannot know when he will exactly fall ill. Therefore, if he is assured by life-long period by a health insurance policy, the person needs not worry about how he will pay for his medical treatment in case he falls ill. If the person has contributed to his health insurance scheme when he was in perfect health, he can still recover that money when he is ill or on a lifetime basis depending on the policy scheme. This plan can also be efficient for old people. If they have contributed when they were young, the insurance company will still undertake the responsibility of meeting the person’s medical expenses at any point throughout their life.

Another type of health insurance coverage is disability insurance, which replaces workers’ income when an accident or illness prevents them from performing their jobs. Disability insurance is less common than medical coverage, but it can be important to assure future financial security for any family that depends on each paycheck to meet its financial obligations. Benefits are generally structured to pay a proportion of a person’s actual earnings, usually from 40 to 60 percent.

Many people believe that in addition to providing financial stability, health insurance can promote good health. Supporters of this idea claim that by lowering the personal cost of services, insurance induces individuals to seek health-maintenance services more regularly than they otherwise would, thereby heading off potentially serious illnesses.

In brief, the health insurance plan is based on a pay as you earn concept whereby you contribute while working and you can take advantage of the contributions you have made previously all throughout your life. No need to pull out your hair when you are in a financially tight position.

Nowadays, we can see that there has been a shift in family structure from extended family to nuclear family and now we have single-parent families. Most of the people in the family work and they have no time to devote to old people. The latter are often placed in shelters for old people. They feel very helpless when they are ill and they have to undertake lots of pain to arrange for money to pay for hospital fees, for medicines among other expenses. If one does not want to end in a shelter for old people, totally helpless and dependent on others for financial aid in case of illness, then the solution is of course a well-planned health insurance policy. There is no other way to secure your health in future because life is so unpredictable that you do not know what is awaiting you in future so better be on the safe side when you still have time by opting for a health insurance plan which covers your health as long as you want.

No need for feel helpless in moments of crisis, when you are ill and you have no financial support from others. You can still manage your future by taking wise decisions such as buying a health insurance policy from a trusted company. You can have schemes that meet your financial budget and therefore secure your life now and in future.