What is Insurance and How It Works?

Most people in this country live within limited means, with little to no savings, emergency funds, or resources to rely on. This is true even for those who have greater financial security. But worry isn’t productive, and it’s not fair to expect people to be constantly apprehensive of the unexpected. It would be an unfortunate way of life.

Just as any good driver would keep eyes on the road with the occasional glance at their rearview mirror, you too should take care in regularly checking up on your financial situation

A visit to the hospital can be physically, mentally and financially draining. Even though healing from physical and mental trauma is already difficult, taking on a significant financial burden during recovery can feel horrible.

Some may think these people are supported by the government, but unfortunately, this is not often the case. In reality, individuals must shoulder two-thirds of all medical expenses; in some places, it’s as much as 90%. Support from external sources can be hard to come by and requires detailed applications or rigorous qualifications to secure.

Hospitalisation is a serious financial burden, especially when one might not have had prior preparation or savings. Diagnostic exams are often necessary before doctors can diagnose an ailment, but post-hospitalization medication costs remain the greatest factor in the debt trap. 

With medical inflation rising year over year at 7–8%, it’s critical to plan ahead for such expenses that might otherwise be unexpected.

Sickness can take a toll financially, as well as disrupt one’s life completely. Not only does it impede achieving financial freedom, but it has the capability to strike at any moment.

Unless you have a complete health insurance plan

Therefore, health policy is a real lifesaver. Not only will it protect you from medical bills, but its affordability means that you can achieve financial independence without breaking the bank. Most people understand just how valuable this insurance product is – and they’re willing to invest in it.

Although health insurance may be seen as a good investment by some, it is not necessarily the case for most. However, many people try to save money when making these purchases, and I can provide insight as to why this might be so.

— It is similar to a game of cat and mouse. It is like a timeless game of pursuit and evasion. 

A health insurance contract generally requires a yearly fee (a premium) to be paid for coverage of future medical expenses, with certain limits in place.

Despite its ease, there is a vast variety of factors to consider. Exploring them can make it obvious why many people are not fond of getting health insurance — it involves intricate details and exceptions that create a product unlikely to be helpful when most required.

This is regarded as an unnecessary hindrance rather than a lifesaver.

Perhaps, it does not have to be like this. We usually sign off on a policy without an in-depth analysis, compared to the endless amount of hours the insurer has spent writing and understanding every word in the document. 

Their lawyers are drafting policies that give them an advantage when it comes to compensations. You, however, do not have that same luxury.

Their teams are constantly perfecting their benefits. You don’t have access to such resources.

They have a wealth of experience, whereas you lack the same.

The fact that you lack an edge here is unsurprising.

It may be possible to arrange a tailor-made agreement with the insurer, where terms and conditions can be specified.

It’s impossible to obtain a custom contract for insurance policies, as they must be standardised for companies to offer them to numerous people. Refusing this type of agreement is not an option; you must go along with the pre-existing document. Although the odds are not in your favour, there are ways of ensuring you still come away from the deal without too much damage.

Here’s why the upcoming chapters are extremely crucial. 

Unlike other health insurance guides that attempt to explain the definitions, this one is formulated differently. Instead of dwelling on the details and intricacies, we will focus on the reasoning behind these rules; it’s like a game of cat and mouse. 

When claims are made, you have the incentive to get as much money as possible, while the insurer has their own plan for reducing risk – but you don’t have your own strategy.

The end goal is to give you a plan. This plan will provide insight into all of the tactics that insurers and their associates use to safeguard their interests. Furthermore, it will provide you with a glimpse into what insurers consider when making decisions. Armed with this knowledge, you’ll know exactly what to do when the time comes to purchase.

The words of Sun Tzu ring true when he said, “The opportunity to secure ourselves against defeat lies in our own hands, but the enemy himself provides the chance of defeating the enemy.”

Insurance companies are not opponents here, but they should not be underestimated. They’re careful, meticulous, and most significantly, they come ready for battle.

It’s now time for you to follow suit.