Is Health Insurance a Good or Bad Idea?

It would help if you looked upon health insurance as a medium of getting assistance during trying times rather than unnecessarily increasing expenses. As such, medical insurance will provide financial support during medical appointments. Medical insurance usually covers most common ailments or used to cover them sometime in the past. Hence, health insurance becomes an even better choice. Let’s understand the pros and cons of health insurance.

Advantages and Disadvantages of Health Insurance

For those who may be unsure, here are the advantages and disadvantages of health insurance:

Advantages

1. Cashless hospitalisation: If an individual with medical insurance gets admitted to an emergency room, they can go through credit-only hospitalisation in any hospital. With this benefit you can fast-track your treatment and recovery without any additional stress of hospital bills.
2. Financial protection: Financial protection is the biggest relief for any person during treatment and hospitalisation. Health insurance will provide financial protection whenever you need a treatment covered by your insurance plan. It is advised to always read the policy document carefully to understand the pros and cons of health insurance, and whether it fits all your needs or not.
3. Peace of mind: Out of the several advantages of health insurance mentioned above, experiencing peace of mind is the most significant benefit of health insurance. The patient can unwind and focus on recovery rather than taking stress regarding the bills. 
4. Tax benefits: The cost of a health insurance policy’s premium is deducted from taxable income, which saves you a considerable amount that would have otherwise gone as tax. 

Disadvantages

1. Increasing premiums: With the increase in your age, the charge for your healthcare coverage likewise increases. This is inevitable and can hinder getting healthcare insurance.
2. Pre-existing diseases: The treatment for a condition you had before obtaining an insurance policy will generally not be covered by most health insurance. This can pose a significant drawback, especially for senior citizens. Hence, read, understand, and compare different types of health insurance to ensure you invest in the policy that meets all your requirements.
3. Waiting period: Commonly, you need to wait for a specific period to get your insurance claims reimbursed. This process can be time-consuming and annoying.

When opting for health insurance, you should assess your healthcare needs, such as your existing health status, medical history, and expected medical expenses. Other factors that need evaluating include your age, the size of your family, and any specific healthcare requirements. Importantly, you should get quotes from multiple insurers and compare the health insurance plans to help you decide on the plan that suits your needs and budget the best.

Conclusion

Whether a health insurance plan is beneficial depends on individual needs and circumstances. Understanding the pros and cons of medical insurance or health insurance listed above is essential to make the right choice. Read thoroughly and decide for yourself.