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Thursday, May 6, 2021
Home Health Health Insurance

Health Insurance

The importance of having a health care policy cannot be over-emphasized. It is the assurance of financial support to an individual or an entire family in case of any emergency or illness. Health insurance helps in meeting the essential expenses for medical treatment, hospitalization, prescription drugs, and other related items. This article provides some basic information about individual health insurance and its advantages and disadvantages.

An individual health insurance plan is basically a type of medical insurance, which covers all the medical expenses incurred by an insured person. In this health plan, the insured person pays the premium on a monthly or yearly basis, and if any medical expenses arising out of the coverage, he would have to pay a certain amount to the insurer. Thus, it is quite similar to a dental plan in which the insured pays the amount for the treatment of his cavities.

The benefits of individual health insurance include the following: The insured person would have the option to choose a provider from a large pool of providers, and the insurer would have the freedom to change providers whenever they feel that the benefits offered by them are not sufficient. This type of plan also allows an insurer to adjust the cost of treatment as per the changing medical cost trends. The insurer would also be allowed to waive out the premium at any time if the insured is no longer able to pay for his medical expenses.

One disadvantage of individual health insurance is that the policyholder would have to bear the entire cost of medical treatment, irrespective of whether he has enough money left or not. Thus, in the event of an accident, a policyholder would have to bear the entire expense of treatment. Another problem faced by the policyholders is the inability to claim a refund of the premiums if they are unable to pay for their treatment due to any reason.

However, there are other types of insurance plans in which the insured is required to pay a certain sum of money every month or year and the premium payments have to be made on a regular basis. In such a case, there would be no need to bear the entire cost of the treatment.

It is important to purchase health insurance while you are young and healthy. Studies show that people who have health problems later in life are more likely to suffer from chronic diseases and are more likely to die earlier than those who are healthy at the time of death. Thus, it is important to have good health in order to ensure that you do not pass away prematurely due to any illness.

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