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Health Insurance and Its Advantages

health-insuranceTo define health insurance, it is a form of insurance that covers the cost of an individual’s medical and hospitalization expenses. Either the insured pays the cost out-of-the-pocket and gets reimbursed or the insurance company makes the payment directly to the provider. In medical insurance terminology, “insured” is the person owning the health insurance coverage, and “provider” is a hospital, clinic, physician, health care practitioner, laboratory, or pharmacy.

The basic idea behind health insurance is that the insured will pay a sum of premium to the insurance company, who in lieu, agrees to provide a comprehensive range of coverage benefits that are intended to pay the cost of hospitalization and other associated expenses on behalf of the insured. However, not all types of treatment, medical intervention or diagnosis is covered under the terms of health insurance policy. For critical illness and chronic diseases, either the individual is not eligible to hold a medical insurance or has to pay a higher amount of premium annually. In countries such as the United States of America, health insurance is generally included in employer benefit packages.

Advantages of Health Insurance

Surprising, but even healthy people need medical insurance. Having a comprehensive health plan not only helps in maintaining good health and wellness of you and your family, but also protects you financially in the event of illness, accident or hospitalization. Considering the advantages of healthcare solutions, countries such as the United States have made it mandatory for employers to offer health insurance as a part of employee’s benefit packages and perks. Discussed here are the key advantages of medical insurance.

1 – Protect Your Financial Future

Having health coverage will cost you money, but not having one will cost you much more. Today, healthcare costs are shooting sky high, and are often beyond the scope of average-income people. Unexpected healthcare needs, combined with exorbitant medical costs, can leave a person with huge medical bills. Having health coverage minimizes the probability that you will have to get broke to pay for high medical costs or lend from others at high rate of interest. Health insurance protects your financial future by paying for your hospitalization and medical expenses, and often includes associated facilities such as preventive care and annual check-ups. It is also a good way to protect your family in the event of expensive medical costs associated with you.

2 – Complete Peace of Mind

Exigencies strike unexpectedly. You never know when an accident or illness might happen. However, if you or your family do not have health coverage, the financial burden when you become ill or meet with an accident, can be devastating. Having a health insurance gives you complete peace of mind that the entire or a certain amount of your medical cost will be paid by the insurance company. At the same time, it encourages seeking necessary preventive care measures that can help in developing a health condition or illness, or diagnose it at an early stage when it is treatable. By protecting your and your family’s financial future, medical insurance ensures complete peace of mind.

3 – Comprehensive Medical Care Coverage

Having medical insurance comes with a myriad of health benefits that ensures protecting your financial future against huge healthcare costs for accidents, hospitalization or illness. Typically, a health insurance plan covers outpatient care, treatment in hospital for inpatient care, cost of emergency room admission, pre-and-post natal care, prescription drugs, substance use disorder and mental health, laboratory tests, rehabilitation facilities, pediatric services, and preventive care. With such comprehensive healthcare coverage, you can have complete peace of mind that most of your medical costs are covered by the insurance company.

Author Bio

Ethen Hunt writes many articles for healthcare solutions provider. Here he writes informative stuff on health insurance and advantages of health insurance.

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