Why Do We Need Health Insurance?
Health Insurance is an insurance policy wherein a person’s medical costs every time or whenever gets sick are covered. On 1964 was the start of the health insurance concept. Actually, it was at first known as disability insurance. Before, insured individuals are expected to pay all other medical concerns from their very own pockets. Now however, health insurance has evolved into a more comprehensive program which covers many areas in a person’s health.
Having a health insurance policy is to have a contract between a certain company for insurances and its customer. The contract is by all means legal and binding. There is however a large difference when you compare private sectors for health insurances or for life insurances. In a life insurance, a person could be guaranteed to be able to avail insurance that is renewable for the whole of that person’s insured life. This insurance would then be paid at a constant rate of premium. For a health insurance however, a person is not guaranteed to continually avail of renewable insurances. Also, one cannot be truly sure if the premium for a health insurance would not increase.
There are a lot of factors that could affect a person’s health insurance. One of the most inherent concerns that would involve the health insurance is adverse selection. This is a term used to describe the fact that only those who think they need a health insurance would procure one. This means that in most cases, a person buying a health insurance is most probably a sick one. Health people tend to overlook health insurances with the thought that they do not need it. In fact, those who enjoy health would just consider a health insurance an unnecessary expense on their parts.
That is why, nowadays, health insurance companies would make a person complete a very comprehensive medical history before they are given insurance. This is done in order to screen out persons that already have medical conditions on their background. This would then result to a refusal of a health insurance grant to those people who health insurance companies think would become a burden. If not refused, the premiums would become very high so as to compensate. On the other hand, if you are a healthy person especially if you do not smoke, then availing a health insurance could be a lot easier and inexpensive.
Nowadays, medical treatment is becoming more and more expensive due to a more expensive technology. In developed countries, the population gets to live longer. Those people mostly are aging, and aging people always need more medical care and attention compared to younger ones. These are some of the reasons why the price for health insurances is becoming more and more expensive. It is said that people could lower the price of health insurance by staying healthy, exercising and eating good and healthy foods.
Knowing all these, one could do better to avail a health insurance when one is still healthy. It would be less expensive. Also, you would not be putting yourself in unnecessary danger by availing insurance when you are already sick. There is a chance you would get rejected and cannot have an insurance, or if you avail of one, it would be a lot more costly.
by Maria-Goldsmith 19 years ago