What is health insurance and why do I need it? Health insurance protects you and your family from financial hardship due to medical bills if you are accidentally injured or become ill. There are four types of health insurance, and you may only need one, or you may need a combination to ensure you have as much coverage as possible. It’s best to evaluate each type of insurance to see exactly which type is best for your needs.
Individual health insurance is designed for those who do not have such coverage through their employer or family members. Medicaid is designed for seniors who contribute to Medicare but want additional coverage to supplement expenses that Medicare doesn’t cover. Hospital Income Insurance is designed to supplement your primary health insurance plan. This insurance provides a pre-arranged daily benefit amount for unexpected expenses during an extended hospital stay due to a covered illness or injury.
A fourth type of health insurance is disability insurance, which comes in three different forms. Disability insurance protects you if you become physically or mentally disabled as a result of an accident or illness. This type of coverage is designed to cover living expenses if the 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 income continuation or group disability plan. This scheme is designed to ensure your financial security during difficult times by paying you your monthly salary directly when you are unable to work. Mortgage disability income insurance is designed to protect your most valuable property, your home. This policy specifically provides you with funds to meet your mortgage obligations if you are totally disabled. Personal credit disability insurance will help you pay off your loan in equal monthly installments. If you are totally disabled, the plan will pay the financial institution directly on your behalf.
There are a lot of things to consider when considering which type of insurance is best for you and how much you really need. If you’re working and get coverage through your employer, investigate how much coverage you really get when it comes to 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 in the workplace? How much will it cost before considering its limits? Will it pay for transplants or long-term care? What about family members, how much will your insurance plan cover them? Then think about your lifestyle. Do you drink or smoke? Is high blood pressure an heirloom? Are you at high risk for diabetes, heart disease or stroke? Are you prone to accidents or are you constantly taking unnecessary risks? Do you work late and drive long distances to get off work? Are you the primary breadwinner? If yes, how will you pay your bills if you lose your job due to an unforeseen disability caused by an accident? Consider all of these things and ask yourself if you and your family have adequate insurance coverage.