Medical Insurance: 5 Reasons Why it is essential

You’ve probably heard this advice: you should always have an emergency fund to cover unexpected expenses. But what about the cost of a potential accident or illness? How can you possibly plan for something like that? This is where medical insurance comes in. One can protect yourself and your family from the financial ramifications of an accident or unexpected illness, allowing you to focus on your recovery instead of worrying about how you will pay the bills.  

Irrespective of your financial status, medical expenses can drain you to the core and leave you bankrupt. Even the world’s wealthiest people have comprehensive medical covers to cater to their health needs in the unlikely event of illness or accidents.  

This article will explain why you need medical insurance and the benefits that come with it. 

What is medical insurance? 

Medical insurance is a type of insurance that covers the costs of medical treatment. This means that if you become ill or injured, your medical provider will pay for the costs of your medical treatment, regardless of the type of treatment you need.  

Lack of good insurance will be responsible for covering the costs of your medical treatment and any prescription drugs you may need. This can be a substantial financial burden, as the costs of medical treatment can be extremely high. 

So here are five reasons why you may need to have insurance: 

To combat medical inflation 

The cost of healthcare is increasing every year and is expected to rise even further in the coming decades. This is especially true in developed countries where medical resources are abundant. 

As healthcare costs rise, so does the need for medical insurance to help deal with inflation. Surgery, emergency care, prescription drugs, lab work, scans, and examinations can all be costly. They may quickly add up to an enormous financial burden.  

Even if you turn down some necessary care you need, you may still find it challenging to afford out-of-pocket.  Health care costs can still be high enough to declare you bankrupt. You, therefore, need to consider coverage options if you want to protect yourself from financial stress. 

To protect your savings 

In an accident or illness, you may need extensive medical care. This could run into thousands of dollars; if you don’t have a medical insurance plan, you will be responsible for paying all these costs out of pocket. 

You could also face a substantial financial burden if you do not have health insurance and are unfortunate enough to suffer from a long-term or chronic illness requiring regular hospital visits. From the costs of doctor’s consultation to treatment and drug prescriptions, the expense can drain you financially and drive you into depression due to medical loans. 

However, having a comprehensive medical insurance plan can provide significant health insurance savings by covering these costs. If you have an indemnity provider, you won’t need to pay for most of these medical expenses out of your own pocket. This type of coverage can help protect your savings and provide peace of mind knowing that your healthcare needs are covered.

To remain secured 

Your medical insurance provider will be able to provide you with the treatment you need when you are sick or injured. This type of insurance guarantees you can secure the care you need when you need it most.  

You may not have any other options or resources to turn to in the event of an accident or illness. Under such circumstances, you will not worry as your medical insurance provider will be there to make sure that you get the treatment you need, regardless of the costs. 

This will allow you to remain secure as you will be covered for all the necessary things your medication may require, including surgery, drug prescriptions, checkups, transportation to and from the hospital, and alternative medical treatments.

It is also best to combine medical insurance with income protection covers so you can still get paid even if you’ve been out of work for some time.

To cover pre and post-hospitalization bills 

Most medical insurance providers will cover the costs of pre and post-hospitalization bills and treatment costs from the hospital. Which means that your provider will pay for the treatment costs, whether you are in or out of the hospital. 

Depending on your insurance plan, this can include the cost of transportation to and from the hospital, any prescription drugs you may require, and any rehabilitation costs.  

Just as important as medical treatment is, so is the process of getting you to and from the hospital. Driving yourself to get emergency care may be impossible if you become ill or injured. If you have medical insurance, it will cover the cost of an ambulance ride, which can be very expensive when hired in a private capacity. 

Income tax benefits 

There are tax benefits associated with having medical insurance. This means that the government will give you a tax break for entire treatment as it’s an expense you must have covered. 

This will allow you to save money on your tax bill, as a portion of your monthly premium may be tax deductible. The deductible amount will depend on your specific situation, so check with your accountant to determine how much you can deduct. 


Regarding your health and well-being, it is always a good idea to plan. Many people only focus on finding a good doctor and getting the best treatment once they are already sick or injured. With good insurance, you can rest assured that you will be able to get the care you need, regardless of the costs or the type of treatment. 

Thsi is a basic form of coverage for protecting yourself and your finances. It will allow you to remain secure, protected, and covered in an accident or illness and cover any pre and post-hospitalization bills that may be expensive if you are to pay from your pocket. 

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