In case you are unaware, health insurance is a type of insurance that is given on agreed terms in case the insured person falls ill or needs medical treatment. Life Insured can have a chronic illness requiring medical attention for years. Let's learn more.
Who will pay for the medical costs?
This is one of the most frequently asked questions by people. If you have health insurance, you can have peace of mind that your health will be taken care of. In fact, it is a type of agreement or contract between you (policyholder) and the health insurance company. The purpose of the agreement or contract is to provide cost protection. Sometimes the costs are so high that the sick person is unable to pay the bills. As a result, the person is unable to get the care they need to recover.
Although you pay a monthly or annual premium, you should expect the amount of premium you will pay to be much less than the amount you would pay in the event of illness.
Keep in mind that health insurance is a type of benefit provided by a non-profit organization, private business, or government agency. In order to determine the cost, the company obtains an estimate of the collective medical cost of all people in the state. Then the risk is distributed among the policyholders.
Regarding the concept, the insurer knows that one person may suffer from huge unanticipated health expenses, while the other person may incur no expense at all. Thus, the expense is spread over a large group of people with the aim of making health insurance much more affordable for all insured people.
Apart from that, public plans are funded by the government. Therefore, they offer additional health insurance to vulnerable groups like the disabled and the elderly.
Let's take an example to better understand the concept. A person with cerebral palsy needs special treatment throughout their life. It is understood that chronic disease costs much more than standard care. Cerebral palsy can lead to a physical impairment that can last a patient's lifetime.
Treatment for this condition may require regular doctor visits, numerous therapies, and long hospital stays. Depending on the degree of impairment, you might need special health insurance. Many healthcare professionals will involve, such as professional therapists, occupational therapists, physiotherapists, orthopedic surgeons, radiologists, pediatricians, neurologists, etc.
Some patients may need the services of more than one. Some may even need a speech-language pathologist, registered dietitian, cosmetic dentist, or urologist, to name a few.
Thus, the coverage offered can help you get some relief from the expense burden. If you don't register you might be in a lot of financial hardship and you might need help from other sources like charities and community groups. So it is a good idea to have health insurance.