Health Insurance

Good Health Insurance

It is a subject of newsworthiness with the last and current presidential administrations. In short, health insurance is certainly a bit controversial these days. This kind of insurance coverage provides valuable protection from the possibility of a myriad of illnesses befalling the policyholder. Indeed, one of the greatest catalysts of bankruptcy in America stems from out-of-control healthcare costs, but a good health insurance policy can alleviate many of these often exorbitant expenses.
Even with a lack of a mandate to purchase coverage, all would be well served in insuring their health. Even those who are youthful and robust in their health can encounter health problems anytime and anywhere. These issues can derive from acute or chronic diseases that may impose upon the sufferer multiple trips to the hospital. Keep in mind that young as well old can experience an accident. Nobody can predict if or when a careless driver might be the cause of a major health crisis, but a quality healthcare policy will normally handle much of any treatment and hospital expenses depending upon the policy parameters.
Health insurance policies almost always come with deductibles. These are the amounts the policyholder must first cover out-of-pocket prior to the policy coverage being activated. They vary with each policy, but deductibles can often be set at very low levels in exchange for higher premiums or vice versa, depending on the preference of the policyholder. These amounts can range from a hundred dollars all the way to $10K. Once the deductible level is paid then policies will generally pay out a certain percentage, sometimes all, covered costs. (Normally, a policy will compensate for 60% to 80% of expenses incurred.) The policyholder is then made liable for the difference up to a stated maximum, which also will differ based on the policy chosen.
Note that coverage with deductibles above $1,000 will normally qualify for a Health Savings Account (HSA) component, which allows policyholders to build up money tax free in an FDIC insured account specifically created for medical costs that normally would be directly out-of-pocket. Again, dollars saved are not taxed nor are they when utilized to pay for covered medical costs. The money saved also compounds over time and potentially can be transformed into a retirement savings once the account holder is 65 years or older.
The major boom of a health insurance policy is the peace of mind inherent in having potential risks managed. A health policy can keep many from getting into massive debt due to medical expenses. It’s really a no-brainer for most folks.