Top 4 reasons why you need to buy medical insurance now
Medical insurance, otherwise known as health insurance, is designed to cover medical expenses during your stay in hospital. Given the high medical costs nowadays (at least in Singapore and United States) and rate of medical inflation going on, it is essential that everyone of us including your dependents such as aging parents, children and spouse is adequately covered by a comprehensive health insurance plan. If not, can easily bankrupt by a major illness from either you yourself or your dependents.
A comprehensive health insurance plan is one in which most of the hospitalization expenses are paid off by the insurer.
1. Still young and healthy without major illness
This basically means that you are still insurable. Do not ever have the idea that you can buy the day before going for a surgery to remove some brain tumor.
This is not like investing in stocks when you can buy at any point in time. In fact, by the time you reached middle age, more likely to get cancer, heart diseases, high blood pressure, diabetes and a host of other shit. Your applications for medical insurance may be rejected. There are a host of health conditions in which a person is defined as uninsurable.
2. Company got insurance for me, so I don’t need any more
Most if not all company paid group health insurance only cover you while on the job. The problem is if a person is diagnosed with kidney failure, need to go for kidney dialysis and cannot work, forced to quit his job, then he is no longer covered by it. This is in addition to lost income.
By the time that he get whatever chronic illness, which insurance company will ever pays for all his medical expenses after paying his first premium?
In addition, most group health insurance cease coverage after the employee retire or above certain age.
3. Not covered by enough medical insurance
When a person is injured due to accident or down by a major illness like cancer. There are a few events that are bound to happen and with hefty expenses.
a. Hospitalized due to accident or major illness – Hospitalization and surgical policy
b. Cannot work to earn income as a result of event a for some period of time or even worse, whole life – Disability policy
c. Die as a result of accident or major illness, and left behind wife and schooling kids. The person die is the breadwinner – Life and/or term insurance policy
There are different insurance plans, known by different names as indicated, that cover expenses for each of the 3 events, as a result, are you sure you are adequately covered?
4. Already adequately covered by government healthcare plan
This is one of the greatest myths unless you live in Scandinavian countries.
Just because the U.S. government bail out AIG does not mean that every taxplayer automatically can claim payouts for healthcare.
Image Credit: NotionsCapital
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