Several Reasons Why it is Important to have Health Insurance
GBS - Health is important for every human being, so protection is also very important. Many people have felt the benefits of health insurance, especially in minimizing the financial impact due to the risk of disease in the future.
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Therefore, people are starting to realize the importance of having personal health insurance. The main reason is that personal health insurance can cover health costs quickly when a medical emergency occurs.
Health insurance is a form of financial protection designed to help individuals or families cope with medical and healthcare costs. In the health insurance scenario, a person pays a periodic premium (fee) to the insurance company, and in return, the insurance company is willing to cover some or all of the costs related to medical treatment, diagnosis, medicines, and other health services.
Having health insurance from a young age is important. This is because apart from being able to provide protection for your body's health in the future, insurance can also reduce medical expenses when you or your beloved family suffers from certain diseases or health problems.
Maybe some young people still think that they will continue to be healthy and far from disease, so they are less interested when offered health insurance products. In fact, disease can attack anyone regardless of age, including serious illnesses such as stroke and heart disease.
Reasons for the Importance of Having Health Insurance
Here are some reasons behind the importance of having health insurance from now on:
- Get immediate access to treatment when you experience an accident or certain illness, for example cancer
- Provides your protection from high and unexpected medical costs
- Minimize expenses when you or a family member falls ill
- Usually the premium amount that needs to be paid is relatively smaller compared to those who have just started insurance at an older age
- Premium: This is the amount of money the insured must pay to the insurance company to obtain insurance coverage. Premiums can be paid monthly, annually, or according to an agreed schedule.
- Insured: This is the individual or family who buys the health insurance policy. Those who are entitled to receive protection benefits from insurance companies.
- Policy: A contract document between the insured and the insurance company that describes the scope, terms and conditions of health insurance.
- Coverage: Represents the services and types of medical expenses that the insurance company will cover. This can include doctor visits, hospitalization, medicines, medical procedures, and so on. However, not all medical expenses may be covered, depending on the type and terms of the policy.
- Maximum Limit: The maximum amount that will be covered by the insurance company during a certain period. Once this amount is reached, the insured will usually have to pay further medical costs out of pocket.
- Deductible (Initial Expense): The amount of money that must be paid by the insured before the insurance company begins to cover costs. Deductibles generally apply within a year of the policy.
- Co-payment (Participation Fee): A small payment that must be paid by the insured every time he gets medical services. The goal is to split the cost between the insured and the insurance company.
- Service Provider Network: A list of doctors, hospitals, and other healthcare providers that insurance companies work with. Selection from within or outside this network can affect the extent to which costs will be covered.
- Claim: The process of submitting an application to obtain reimbursement of medical expenses from an insurance company based on the policy you have.