Having medical insurance acts as a buffer against unforseen health emergencies. Costs of medical treatments have sharply escalated the world over and not having medical insurance is a sure prescription for financial disaster should you face a sudden need to get around a health crisis. Often whole life’s savings are wiped out for settling high medical bills.
Usually, salaried employees are covered by health insurance schemes offered by their companies which tie up with service providers. Because of the bulk of insurance policies bought by the employer, these are usually offered at rock bottom premiums. Employees depend on such policies but they are generally inadequate to cover major illness requiring prolonged and expensive treatments. It is why most professionals take out separate covers as a supplement to the group health insurance of employers. Apart from this aspect, it is always preferable, in fact mandatory that all individuals should have some form of medical insurance.
The scope of this piece is not about the many types of medical insurance covers available but why it is necessary to have medical insurance.
- Inadequate coverage – As already stated, most organisations provide a basic medical cover but these are basic in nature and not adequate to meet major illnesses. It is important that provisions be made for major medical emergencies. Here again you should weigh the pros and cons of individual policies carefully and take out a cover that will match your financial condition. Find out if your current doctor is networked with your chosen insurance company. HMOs are the most restrictive plans while you can go outside the network with PPOs, of course by paying a higher premium. Further confirm the areas of treatments covered by your intended policy and whether there are any restrictive clauses.
For instance, if you have treatments of skin ailments in mind, choose a policy that permits it. Find out the cost of treatments in beauty salons and spas that have the best laser hair removal machines and plan accordingly. A guideline that you can follow in this regard is to go for IPL laser machines supplied by universalipl.com.au. You can be sure that you will get the best possible procedures.
- Insurance cover validity – The insurance cover provided by an organisation is limited to the period that the employee works there. Such insurance policies lapse whenever you leave your job, either on superannuation or for better career opportunities. If you do not have a backup and if any health issues arise when you are between jobs, you will be hit hard financially. Hence it is wise to have a personal medical insurance regardless what your employer has to offer as these are not restricted so long as you keep paying the premiums.
- Buy early – Buy health insurance early, as soon as you can afford to pay the premiums. There are a number of benefits to it. First, when you are young, the premium payable is lower and offers you comprehensive coverage. This is against taking a policy at an older age when you might be affected by the “pre-existing” clause which does not cover for a specific time certain ailments that you already have. This basically goes against the very goal of taking medical insurance cover. Further, most insurance companies have an upper age entry restriction. Therefore if you are planning to go for medical insurance post-retirement after your employer provided cover lapses, you might be hard put to find an insurance company that will permit you to do so.
These are some of the reasons why you should buy medical insurance cover and when. It is better to buy medical insurance when you don’t need it rather than try to buy when you need it but won’t get it.