“Some things are so unexpected that no one is prepared for them. “
-Leo Rosten
We buy health insurance because we treat insurance as a means for saving money to meet hidden health expenses in the future. It will be challenging for a family to arrange the funds required for the treatment in case of emergencies. Thus, we can say that health insurance serves as a “financial tool” for an individual.
However, it is also necessary to have a clear understanding of health insurance so that you can be shrewd in your buying decision.
Here are some of the reasons as to why people are hesitant to buy health insurance:
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Cost:
One of the main disadvantages of health insurance is cost. Paying the premiums can be very difficult for the middle-income group. And health coverage for all the members in the family seems like a burden to people, especially if he is the sole earner in the family. One must not consider paying premiums as a financial burden because, with health insurance, you are ensuring that you and your family can bear the cost of medical expenses without mortgaging any property or gold.
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Typical mentality:
Currently, health insurance is viewed as a product that is marketed by insurance companies to make a profit at the cost of others. On the other hand, we always think that we could have invested the money somewhere else instead of buying the insurance. We completely ignore the importance of having insurance. Buying health insurance is a “supportive lifeline” to you and your family. Paying premiums is not an opportunity cost because you are spending money to keep your family protected from future unseen emergencies.
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Uncertainty:
For many young people, understanding health insurance is like a leap in the dark. And many do not want to dive in the light of health insurance because they have too many questions in their mind, which are unanswered, especially regarding premiums. It’s simple; The premium you pay depends on the number of years to choose for a particular cover.
Also, many people are confused regarding the types of health insurance. Read – Types of health insurance for better understanding.
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Not necessary:
Buying health insurance isn’t a must thing that you should do. Certain people will have the habit of saving money to meet their medical expenses. If you are a sole earned and have a family, then it is advisable to buy health insurance.
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Confusing:
People think that health insurance is rocket science to understand. They are confused because they do not know about health insurance, and hence, they are unable to make informed decisions. However, knowledge is wealth, hence consider knowing about health insurance before arriving at any decision.
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Lack of trust:
People lack the confidence in insurance companies, and because of past instances, they fear to put their money into buying the policy. You can choose the right insurance policy based on the strong financial rating of insurance companies. So, by doing proper research, you can select the right product and be confident in your decision and your money will be safe.
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Pre-existing exclusions:
Another disadvantage is people with pre-existing diseases. Insurance companies will not cover illnesses that you already have when you take the policy. Rules of the insurance company may refuse to pay for the treatment for the pre-existing disease. “Waiting periods” will add-on more disadvantage to health insurance.
Thus, buy health insurance based on your financial needs because your requirements are unique from others, so do not follow the herd. If you are unable to make decisions, take the help of your friends and colleagues, or financial advisors.
