![](http://162.243.127.157/wp-content/uploads/2022/11/Getty-michaelquirk-1000x600.jpg)
3 Benefits of Health Insurance You Probably Didn’t Know About
![](http://162.243.127.157/wp-content/uploads/2022/11/Getty-michaelquirk-1000x600.jpg)
While you may be working very hard to meet your financial goals, an unexpected health issue could have a significant impact on your journey. If you are the family’s sole breadwinner, the financial strain could be enormous, even if it’s someone else in your family who has a medical emergency.
Because of the rising cost of private medical care in the country, hospitalization can burn a huge hole in your pocket and significantly impact your financial health. Purchasing health insurance is a wise way to protect your finances. When you buy health insurance, you enter into an agreement with the insurer in which the insurer agrees to pay for your medical expenses.
Health insurance is the primary means by which most consumers pay for medical and hospital expenses. Some people may be eligible for public health insurance such as Medicare and Medicaid based on their age, income, and family size. Private health insurance is also available. When it comes to private health insurance, there are significant differences between a health-managed organization (HMO) plan and a preferred provider organization (PPO) plan.
![](http://telehealthdave.com/wp-content/uploads/2022/11/Insurance-Pinterest.jpg)
Insurance/ Pinterest | Nothing is more important than your life and your ability to make a living
There will be benefits and limitations depending on the type of private health insurance you choose. While most financial planners will advise you to carry some form of private coverage, there are some drawbacks that should be considered before purchasing a policy. Here is a list of the benefits and disadvantages of private health insurance that you should be aware of to make the best decision for you.
Advantages
No Claim Bonus
A no-claim bonus, also known as a renewal bonus, is an increase in the sum insured provided by the insurance company at the time of renewal for no claims made in the previous policy year. The insurance companies’ maximum renewal bonus or no claim bonus would not exceed 100% of the basic sum insured.
A few health insurance plans offer a 10% to 50% renewal bonus for each claim-free year. The higher the renewal bonus percentage each year, the greater the sum insured at renewal. The best health insurance policy is one that offers a 100% renewal bonus or a no-claim bonus for each year of claim-free service.
Peace of mind
![](http://telehealthdave.com/wp-content/uploads/2022/11/Kamal-Kapoor-Times.jpg)
Kamal Kapoor/ Times | We live in an unpredictable world these days. Thus, there are many legitimate reasons to prepare yourself for those unannounced curveballs
Another significant advantage of health insurance is its peace of mind. Purchasing health insurance provides a great sense of security, especially if you purchase a family floater plan. You feel a sense of security knowing that your health, as well as the health of your family, is fully protected.
A health plan relieves you of the burden of worrying about healthcare costs and allows you to select the best medical care for yourself and your family. Quality care can also hasten recovery, allowing you to regain your health sooner than expected.
Protection from medical inflation
![](http://telehealthdave.com/wp-content/uploads/2022/11/Ajay-Shah.jpg)
Ajay Shah/ Pinterest | You don’t buy life insurance because you are going to die, but because those you love are going to live
As medical technology advances and diseases become more prevalent, the cost of treatment rises. It is also critical to understand that medical expenses are not limited to hospitals. The cost of doctor’s consultations, diagnostic tests, ambulance charges, operating room costs, medicines, room rent, and so on, are all rising. If you are not adequately prepared, all of these things could put a significant strain on your finances. By paying a relatively low annual health insurance premium, you can avoid the burden of medical inflation while receiving quality care without worrying about the cost.
More in Motivation
-
`
ADHD Knows No Boundaries: Even Celebrities Are Affected
Attention deficit hyperactivity disorder (ADHD) often conjures images of bouncing-off-the-walls children struggling to sit still in class. But what if we...
February 15, 2024 -
`
How to Navigate Medicare and Insurance Options in 2024
As we age, maintaining good dental health becomes more important than ever. However, according to the Kaiser Family Foundation, nearly half...
February 6, 2024 -
`
How to Do HIIT on an Elliptical Machine? A Guide to Healthier Living
At the core of this fitness approach is the elliptical machine, also fondly known as the cross trainer. This gym staple...
February 3, 2024 -
`
10 Winter Smoothie Recipes to Savor the Season
Winter’s chill might make you crave cozy soups, but let’s not forget the magic a blender can bring to your cold...
January 24, 2024 -
`
The Heart and Soul of ‘Percy Jackson’: Aryan Simhadri on Embodying Grover
Imagine stepping into a world where ancient myths come alive, where your best friend isn’t just a regular teenager but a...
January 20, 2024 -
`
Everything You Need to Know About Grace Period in Health Insurance Plans
Imagine missing your health insurance premium payment by just a day and facing a health crisis the next day. Scary, right?...
January 10, 2024 -
`
Revitalize Your Mornings with Quick Yoga Energizers
Ever wake up feeling a bit sluggish and wishing for a burst of energy to kickstart your day? Morning yoga might...
January 4, 2024 -
`
How to Workout to Promote Longevity | The Exercise Blueprint
Pursuing a longer, more fulfilling life hinges on more than mere wishes—it’s about the actions you take, especially in the realm...
December 11, 2023 -
`
Plant-Based Diet: Trim Your Waistline and Cut Grocery Bills
In an era where health-consciousness and sustainability are at the forefront of our minds, the plant-based diet has emerged as a...
December 4, 2023
You must be logged in to post a comment Login