What is health insurance?
What is health insurance and why do I need it? Health insurance protects you and your family from financial hardship due to medical expenses in the event of an unexpected injury or illness. There are four types of health insurance, you may need just one or you may need a combination to ensure you have the most insurance coverage possible. It’s best to evaluate each type of insurance to get an accurate account of which type best suits your needs.
Individual health coverage is designed for people who do not receive this type of coverage through their employer or family. Supplemental medical insurance is designed for seniors who contribute to Medicare, but want additional coverage to supplement expenses that Medicare won’t cover. Hospital admission insurance is designed to supplement your primary health insurance program. This coverage provides a preset daily benefit amount for unexpected expenses that accompany extended hospital stays for a covered illness or injury.
The fourth type of health insurance coverage is disability insurance, which comes in three different forms. Disability insurance protects you if you become physically or mentally disabled due to an accident or illness. This type of insurance is designed to cover your living expenses if a disability prevents you from working or earning a living.
Disability income insurance is used as a primary income replacement plan or as an enhancement to your group disability or income continuation plan. This plan is designed to keep you financially secure during difficult times by paying monthly wages directly to you when you are unable to work. Mortgage disability income insurance is designed to protect your most prized possession, your home. This policy specifically provides you with money to meet your mortgage obligation if you become totally disabled. Individual credit disability insurance will help you pay your loan payments in equal monthly installments. In the event you become totally disabled, this plan will make payments on your behalf directly to the financial institution.
There are many things to consider when contemplating what type of insurance is best for you and how much coverage you really need. If you’re working and get insurance through your employer, find out how much coverage they actually provide in terms of health care. Then ask yourself the following series of questions:
Does it cover pre-existing conditions, genetic conditions, chronic or life-threatening conditions? Does it only cover accidents that occur in the workplace? How much money will you spend before it counts toward your limit? Will it cover the cost of transplants or long-term care? What about family members, how much coverage will their insurance plan provide? So think about your lifestyle. Do you drink or smoke? Is hypertension a family heirloom? Are you at high risk for diabetes, heart attack, or stroke? Are you prone to accidents or do you often take unnecessary risks? Do you work late and drive a considerable distance to and from work? Are you the main breadwinner in the family and, if so, how will the bills be paid if you lose your job due to an unforeseen disability caused by an accident? Consider all of these things, and then ask yourself if you and your family are adequately insured.