What Is Health Assurance?
A good health assurance plan, which is the same as health insurance, can mean the difference between bankruptcy or continued solvency after a major illness. People can get health assurance in the form of group assurance, as with assurance provided by employers, or people can purchase an individual policy. But, regardless of how it's obtained, every individual and family should have some form of health assurance.
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Significance
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Health assurance is the same as health insurance. The word "assurance" is often used for marketing purposes. Health insurance pays medical and hospital bills when the insured visits the doctor, has medical tests performed, purchases medicine or is hospitalized.
Function
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Health insurance works on the principle of "pooled risk." The larger the number of people in the pool, the lower the cost. This is because the risk that any individual will get sick is minimized by the number of people in the pool. Since everyone in the pool pays monthly premiums, the insurance company can easily cover the cost of the individuals who are sick at any given time.
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Benefits
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Although health-insurance premiums may be expensive, especially for individual (non-group) policies, the benefits far out weigh cost. First, individuals have the piece mind that comes with the fact that, if they are sick or hospitalized, their medical bills will be covered. Then, if a major sickness or injury occurs, health insurance can keep families from going bankrupt.
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References
- Photo Credit health centre sign. access to health centre image by L. Shat from Fotolia.com
