Many young people ignore the benefits of having a health insurance plan. While young, at school and college the chances are they were covered by their parent’s employer’s schemes and anyway never had much call to use it. Every year a sniffle or 2, possibly tonsillitis or an appendix but by and large that was it. So as far as they are concerned health insurance is a non issue.
Then they get a job. A whole lot of things change. Firstly the parent’s medical schemes stop covering them. Secondly the chances are good that if the company they get a job at has a medical scheme it will not be as favorable as the coverage they were receiving from their parent’s scheme.
Health insurance and medical schemes generally have changed a lot and are not nearly as benevolent as they used to be. Because of the astronomical rises in the cost of health care (which in itself has vastly improved in techniques and abilities) coupled with the economic straights the economy finds itself in many companies have cut right back on the benefits they used to give to the employees.
The next thing to be taken into account is what sort of fund is needed. The young fit and healthy will not want any. They reason that the annual influenza costs maybe a hundred dollars in doctor’s bills and antibiotics, and in any event “I never get sick” or “heart attacks cannot happen to me” while if they take out a health insurance that monthly premium has to be paid and they will lose out over the years.
If they are correct in their feeling of invulnerability they are extremely fortunate. And maybe for years and years nothing will happen. Or maybe tomorrow the car they are driving will burst a tire and roll leaving them with a broken leg and six weeks in hospital in traction. I know I am going from one extreme but that is what insurance is about.
And there are big advantages to taking out insurance when you are young and healthy as the policy becomes stable and you are able to build up a lot of credit and keep your premiums down.
The other big advantage of being on a scheme is that if one develops a chronic condition as one gets older, insurance companies may excluded expenses from that condition if you suddenly decide to join later in life. Because of the current lifestyles and poor eating habits adult onset diabetes is becoming more and more common. But that is not all, One is always exposed to all sorts of pathogens, remember the asian bird flu a couple of years ago?
Not to take out health insurance when you can afford it is really short sighted. Health Insurance for Individuals comes in all sorts of varieties and when you are young and fit you may well want to skimp on the insurance but the advice is not to if the decision to add these options later may cost you greatly. Bear in mind that Insurance cannot be purchased after the event.