Why do the majority of individuals avoid buying a health insurance policy?
Do you have health insurance? Find out why it’s important, and some of the reasons why people avoid buying a policy.
When is the last time you ignored a phone call from a health insurance company? You might have considered it as spam, obviously, when you already have medical insurance. But, if you have no health insurance and still avoid buying a health insurance policy, then read on to understand why people are reluctant to get a health insurance policy.
The majority of people often see health insurance as an expense, and avoid buying a policy because it involves regular premium payments to an insurance company. Unlike other forms of insurance or any investments, they do not assure monetary returns with interest.
Instead, for the premium payments, the medical insurance company provides coverage for medical expenses, treatments, and services that can be quite costly. The National Library of Medicine, USA says, ‘Uninsured adults have less access to recommended care, receive poorer quality of care, and experience worse health outcomes than insured adults do.’
Here are some of the major misunderstandings that may further steer you away from getting your health insured.
An additional expense
Even with health insurance, policyholders think mostly about having to pay additional costs such as co-payments, and coinsurance when they receive medical care. These out-of-pocket expenses can add up and feel like a financial burden.
But on the brighter side, this cost-sharing mechanism helps keep insurance premiums lower for everyone. By sharing the financial responsibility, it prevents the overuse of medical services, which could lead to increased overall healthcare costs.
Mandatory monthly premiums
Health insurance requires individuals or families to pay monthly premiums to maintain coverage. These premiums are often a fixed amount, and people may feel like they are spending money without directly benefiting from it unless they need medical care.
The good news is that medical insurance companies offer various premium-paying tenures to suit the customer. Also, we need to remember a hard-hitting truth, whether it is an emergency medical situation or planned medical expense, no hospital will offer as an EMI scheme to receive the treatments.
We have to pay a lump sum when saving the life would be our top priority. Would we risk it? Medical insurance companies bear this risk at a minimal cost called premiums, which would help us in needy times in manifolds. These premiums are virtually like a multi-bagger investment, to rescue us from the health crisis.
Return on investment
When people evaluate whether to purchase health insurance or not, they might compare the premiums they have to pay with the perceived value they receive in return. If they have not used the insurance much during a certain period, they may feel like the money spent on premiums could have been used elsewhere like in stock, gold, real estate, or bonds.
Here comes the brighter side, we have to be clear about the fact that health insurance is not an investment for profit but an investment for saving our lives. The purpose is to give you returns in terms of covering you in unexpected scenarios.
Some medical expenses could wipe out all your other investments, but health insurance secures your other investments by covering huge medical expenses. Also, Premium paid towards health cover for self, family and parents not only provides financial help in case of medical emergencies but also reduces tax liability, says the Economic Times. Isn’t it a fair return on investment?
Health insurance is a safety net that provides financial protection when unexpected medical issues arise. Since people cannot predict when they will get sick or require medical attention, they might not perceive the immediate benefits of insurance until they need to use it.
Let us get back to the positive – why would you want some serious medical condition to prove the worth of the health insurance you bought? If you fall sick, your health insurance covers you for good. If you don’t fall sick, be grateful for being healthy. And almost every medical insurance company offers various benefits for non-availing of claims, like annual health check-ups, waivers, etc.
Some people, especially those who are relatively young and healthy, might view health insurance as an unnecessary expense since they feel they are at a lower risk of significant medical issues. They may prefer to save money by not purchasing insurance, they think their savings can be used during medical emergencies.
However the brighter side of opting for a medical insurance policy says, the premiums cost less than your mobile and internet expense per month if you get one at an early age and also you can pay lesser renewals.
The reality is, though, that no one is living a risk-free life. Various endangerments to life like accidents, pandemics, and poor lifestyle choices co-exist among us. So we must acknowledge rather ignoring the obvious risk. After all, we do not have a time machine yet to go back and change things.
Why health insurance is so essential
Health insurance is a must because it ensures access to quality healthcare, preventive services, and timely treatments without facing overwhelming financial burdens. It also gives us a chance for early detection of health issues, supports preventive care, and offers peace of mind during emergencies.
Without it, individuals risk potential bankruptcy and limited access to medical services, jeopardizing their well-being. By pooling risks and sharing costs, health insurance creates a healthier, more secure society, benefiting individuals and the healthcare system as a whole.
Do you still want to be in the crowd that pretends all is fine without a health insurance? Or you are going to secure yourself with the right policy? Get one now!