People are often acutely aware of the premiums of their Medical Insurance. They wonder if it would not be possible to “get by” with less Medical Insurance, especially if they have not had any major health trouble to date. Medical Insurance occupies an unusual position in our lives since we are “banking” on a value that we hope never to have to cash in. In fact, health insurance is very different from other forms of insurance because of the way the “risk” is understood — both by the insurance companies themselves and by the people who hold and pay for the policy.
Let’s examine that for a moment. If you have homeowner’s insurance, for example, you know precisely what you are protecting, and what you are protecting it against. The value of your home is something that can always be established by appropriate professional means, no matter how old it is, where it is located, or how much you have paid for it. Likewise, when you purchase other forms of insurance to cover your home, a great deal of effort goes into establishing the appropriate value and the premiums. This may not seem to be the case when it comes to Medical Insurance.
Other forms of insurance carry with them a defined amount of risk that the insurance company must bear along with you. For example, if you live in Florida or another east coast location where hurricanes are possible, the presumed risk of hurricanes must be calculated into your homeowner’s insurance or other protection. If you live in an area where earthquakes are possible, but are far enough inland that you will never see major rain storms, this is another possibility that is entered into your insurance formula. By comparison, Medical Insurance can seem imprecise. Your age, weight, and other factors are used instead.
However, it is precisely because of this level of uncertainty that it is necessary to carry as much Medical Insurance as you reasonably can. If you are robbed or your house is damaged or even destroyed, the value of that damage can be computed easily. If you fall ill and must pursue the most reasonable, medically viable treatment for your situation, there is no calculating how expensive that will be — nor can you calculate the anticipated amount of lost wages or other lost opportunities that will accrue while you are unable to work. As a result, health insurance is always a good “bet.”