Health insurance is a type of coverage that pays for your medical expenses incurred by the insured. This coverage includes illness, injuries, medicine, hospital bills, etc., providing people with a financial backup in medical emergencies.
Nowadays, medicines and medical services are shooting up, leaving many people crippled with life-altering expenses. Those who have health insurance were able to mitigate the hard blows of medical-related expenses, but for people with no financial safety nets, breaking the bank is the obvious outcome. For this reason, acquiring health insurance proves to be quite beneficial.
How does Health Insurance Work?
When you have health insurance in place, any expenses related to your health that are included in the insurance’s coverage will be paid for in part or as a whole by the insurer. Thus, in a way, health insurance works a lot like other types of insurance as car insurance.
For example, if you were involved in a car accident that led to tons of repairs, or perhaps it may need to be replaced entirely, the car insurance will pick up some of the cost. This is very convenient if you don’t have that much money to buy a repair or buy a new one, not to mention that car repair or replacement may very well be above your pay grade.
But unlike the typical auto insurance, health insurance covers more than the cost of an accident. Health insurance typically includes annual checkups, medications, vaccinations, preventive health care, etc., in its coverage.
It’s like your car insurance but with the added copay for tire rotations and oil changes. If that hasn’t convinced you, here are some more reasons you should get health insurance. Also, there are a lot of great health insurance on the internet and looking for it is made easier if you find health insurance with Assurance IQ.
Fight Lifestyle Diseases
Lifestyle diseases like diabetes, obesity, and respiratory illnesses are rising among people under 45. In the past, these diseases were more prevalent among seniors. However, the new generation has also shown up with many lifestyle diseases despite their young age. Some of the main contributors to this are sedentary lifestyle, stress, pollution, etc.
Medication and healthcare can be a huge financial burden for young people, especially when a health incident roots in lifestyle diseases. It’s a challenging thing to cope with, for sure. However, with that in mind, investing early in health insurance can put your mind at rest as you don’t have to worry about your financial life that much anymore if ever something happens.
Safeguarding Your Family
Many health insurances in the market allow you to have all of your family members insured instead of having one only for yourself. It’s certainly much cheaper instead of buying policies separately. Health illnesses can happen to anyone, from your younger siblings to your aging parents.
You should not ever worry about ensuring they get the best medical treatment. With that in mind, if you want to protect your family, choose an insurance policy that includes all your family members.
Income Tax Benefit
Payments made towards your insurance are eligible for tax deduction depending on your policy. However, you may be able to deduct some of your premiums if you bought health insurance using your after-tax dollars. For 2021 and 2022, you’re allowed to deduct any unreimbursed healthcare expenses you paid for yourself and your dependents, as long as they are qualified and exceed 7.5% of your adjusted gross income (AGI).
AGI is an adjusted form of your gross income, including your wages, capital gains, interest income, dividends, spousal support, etc., minus any income deductions that include retirement contributions, student loans payment, or any loss incurred from a sold property.
The expenses that can be qualified for the deduction will include your premiums from your insurance policy and any out-of-pocket health expenses like mental healthcare, dental care, vision care, surgeries, and even doctor visits.
Protect Your Savings
One of the main problems with any unforeseen medical events is the expenses. The bills can be so high that not even your income comes close, and sometimes, we might even consider getting some money from our savings. By buying a health insurance policy, there’s no need for that as you’ll only have to copay for the expenses if they are included in the coverage.
If you want to be financially secure in an unforeseen health-related event, then having health insurance is one of the things you should consider first. Sure, the premiums can be very expensive, but that’s just a little sacrifice if you want to avoid paying any health-related expenses in the future. You might think you or your family are healthy now, but nobody knows the future. Better be prepared.