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Why Do you Need Medical Insurance?

Most individuals who do not have medical insurance give the excuse that health insurance is too costly and they choose not to buy it without realizing that the benefits and assurance you receive from having medical insurance far outweigh the cost savings of not having it. One thing people think about insurance companies is that they are ripping people off because they must be charging customers more than what they are actually paying out in medical expenses, when this isn’t even the case. Insurance companies run at a loss for premiums they take in vs. expenses they pay out on average. The way they make money is through investments of those premiums that were paid, so they typically pay out more money to each individual than they take in from them in premiums. Insurance companies can also lower their overall expenses paid to hospitals, doctors and other medical expenses by negotiating them in a lump sum. If an individual were not insured, they would have to pay much more than the insurance company would have to because they don’t have leverage the insurance company does and the uninsured individual is seen as higher risk. Not having medical insurance carries many risks, some less obvious than others. Below are the largest risks of not having medical insurance.

Can Cause Bankruptcy or Financially Ruin You

If you look at statistics in the United States for the leading causes of bankruptcy, medical debt related to illnesses or accidents is one of the top causes. The only greater cause of bankruptcy in the US is loss of job. In most cases individuals either did not have any insurance or they were underinsured. A study done by Harvard University found that 46% of bankruptcies are caused by health and medical bills. People who lack medical insurance tend to skip preventative care because of cost fears and this sometimes leads to serious and expensive medical treatment in the future. Purchasing medical insurance is actually one of the best preventative measures an individual can take to protect against future bankruptcy. 

You May not be able to Purchase Insurance in the Future if you wait

It is best to purchase medical insurance when you don’t need it because in the future if you have a major medical problem it will be very hard or every expensive to find coverage. It is a good idea to get it in your head you always need medical insurance no matter what and purchase it as soon as possible.

Higher Risk of Death

Statistically speaking, uninsured individuals have a higher chance of dying when they do not have medical insurance. People without medical insurance tend to not do as many preventative checkups and serious problems are caught later rather than sooner.

Medical insurance should be seen as a necessity for all people. Insurance companies are always criticized a lot, but they do create a necessary