Insurance Choice: What You Decide Matters!

A lack of health insurance policies for long has been a big problem for people all over the world

. There are direct as well as indirect costs that are related to not having an insurance policy. Direct costs mean that a non insured individual, when faced with a contingency situation that requires expenses of a large proportion, will either have to pay out of savings, or borrow from an external source.

Not paying the treatment costs mean that the contingency does not get the most suitable solution. Now, even if the payment is made from own or different source, this means a loss of resource because the money could have been invested on different avenues. A borrowing of funds possibly means repayment with interest which is again a drain of resource. This is the indirect cost related to not having an insurance policy at all.

Insurance choice is one of the most important decisions one can make in life and it has many benefits attached. The benefits could come to the individual in direct and indirect form. Let us discuss these benefits below:

First, the insurance choice enables the insurer to be the direct beneficiary of the policy. In other words, the insurer can reap the financial benefits by being fully covered for all types of contingencies. Given the spiraling costs of treatment, a health insurance policy enables you to cover most of the treatment costs.

Second, given that you start early, the insurance choice will enable you to save a lot of money that you can invest in other productive investment avenues. Hence, health insurance will not only enable you to invest money and reap benefits but the entire nation will gain from the investment you make.

Third, a health insurance policy prevents you from borrowing money from other sources in the event of contingencies. Borrowing money is a possible drain on your financial resources because depending on the source of money, you need to repay the money with interest. Thus, you will possibly lose out on a lot of financial resources which you could have profitably invested in other schemes.

Now let us take a look on the steps to obtain an insurance policy.

First, understand your requirements and expectations from the policy clearly. Is it that you are looking for a cheap health insurance?

Second, decide on the amount of premium you can afford to pay at the agreed frequency to the insurer.

Third, take a look at the different insurance policies that the insurance providers provide. Carefully evaluate the policies and characteristics of each policy and decide which policy would be most suitable for you. You can also take the help of an expert.

by: Tim Gaffey

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