The hidden benefits of a well invested Health Insurance

Health is a private matter and a personal conscious that every individual adheres to. How we use this machine today determines the consequences we may have to endure in future. But a very bland lifestyle is not something that every other person would like to have, thus a certain low in our health, at a certain moment of our life, is likely to be inevitable.

It is therefore very necessary to take the right steps towards a sustainable lifestyle for a fitter tomorrow. But ‘what if’ is a question that nobody really asks and being on the safer side has become the norm in the twenty first century.

A health insurance, the umbrella that will look after you than a probable third cousin down the lane

Health insurance is the latest ‘thing’ of the hour but ever wondered how it all began? Basically, during the times of civil war, accidental insurance was something that had just come up. It was essentially for people traveling in trains and steamboats and as they say during those days, it was a common thing for a train or a steamboat to explode every now and then. This insurance policy, however, didn’t carry any regular health insurance benefits whatsoever.

Even as time rolled by the 20th century, not much interest regarding health insurances had taken place. This was probably because there were no hi-tech medical treatments back then. One did not have to spend a fortune to get an artificial heart transplant or go through MRI scans. In short, healthcare was rather an affordable expense.

The real game of the health insurance market kicked off during world war two. This was the time when finding employees was scarce. Also, wartime emergency plans had set certain wage control policies, thus employers could not compete by paying more to the workers. This is when the plan of employer-provided health insurance plans kicked in. This lead to more employees showing up. This trend is something that has crept up to exist in today’s world as well. But the question that still remains is what after retirement.

The company coverage is limited and lasts as long as you work for the firm but once you retire, you are basically on your own. Thus the need for a planned private health insurance is of utmost importance. For the one who would say that they do not need one, they are going to be fit and fine for the rest of their lives, need to reconsider their facts well. Accidents do not happen to sick people and cancer is not a hereditary disorder. A fracture happens anytime, anywhere, even if you did not plan on getting one. Then what? Even a simple disease needs a routine scanning, hospitalization, medication and the list may go on.

One cannot ignore the fact that health care in today’s world is very expensive. Thus having a health insurance is always a wise decision. One may take a plan that suits them the best. But it is always best to take appropriate preventive measures than to pay a hefty amount later. The reality of health insurances is still a complicated procedural torture to many. One may ask as to which healthcare is best suited for them. It is better to be well informed in prior rather than to make a wrong decision.

Firstly, there is a term called the actuarial value i.e. the amount of pay package that you want for the insurance company to cover for you. The more the actuarial value, the more it costs. Also the more you pay today, the less you pay tomorrow. Also, almost all insurance companies have their own networks of physicians. There are doctors, hospitals, etcetera with whom the insurance companies have a negotiated lower rate deals signed off. Thus one gets better coverage if one stays inside the network else pay i.e. more if one goes outside the network.

There are many other terms which may actually play to our advantage in future. The plan of co-pay exists, which means one may have invested in a less expensive plan and when the need arises, the health insurance company and the insured may pay accordingly.

Co-insurance is another term wherein the insurer pays an additional amount to the already existing base plan.

Top up is again a beautiful concept, for e.g. If one opts for a health insurance plan of 5 lakh, he or she may opt for a top up of a coverage plan worth 30 lakh at a mere sum of 4-5000 rupees only.

Thus one must not detest the complicity of having a health insurance plan nor should one undermine its need. A well informed and planned decision is all it takes for an assured future plan.