subject: Health Insurance- Is It Necessary? [print this page] Health Insurance, at its simplest, can be defined as an agreement between the person who is getting insured and the insurance company. This is where the insurance company offers to pay for the person's healthcare bills as they fall due, contingent upon the person paying regular premiums to the insurance company. Nowadays there are many insurance companies and the main reason for that is the fact that people are ready to get their health insurance. The increased willingness to take up health insurance is in turn due to increase in healthcare costs, the emergence of new diseases and so on. They take up health insurance cover and live with the knowledge that if something happens to them, then health insurance will at least take care of the financial impact of the illness or accident, leaving them to recuperate in peace.
You can actually say that Health Insurance is way of keeping your family secure after any kind of accidents or even during illness. It is a 'peace of mind' investment. Without it, you know that you would be in for very difficult times if you (or a member of your family) happened to fall ill just when you had run out of money.
To get you insured, a person has to pay certain money which is termed as Premium money. There are different methods for renewing your health insurance; either you can do it monthly or annually. You can select the amount which will get as insurance and depending on that your premium amount will be decided. All these things are written in the agreement contract, which the insurer and the person taking up insurance sign, to kick the coverage into action. This agreement is referred to as Evidence of the Coverage. The insurer after buying the insurance has to keep on paying the certain premium amount every month to keep the coverage alive.
Younger people, who are still in prime health, often wonder whether it is necessary for them to take health insurance. And the answer is yes, because it can prove to be extremely beneficial for them should they ever fall ill or encounter an accident. Health insurance is a about making your future secure. Remember, all it takes is just a single major incident to change your fine condition to something of a mess.
You can also get insurance from your employer, i.e. the company from where you are working with. Indeed a vast majority of the people with health insurance all over the world get it through their employers.
Check the benefits you are getting from your company's health insurance plans, and compare them with what you would get elsewhere. You should be very careful while selecting these insurance policies, if you are to get good value for your money.
by: Gen Wright
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