Wednesday, May 5, 2010

Health Care Or Health Insurance - An Investment Obligation

Building your health care

The first step to build a brighter financial future is to purchase health insurance. It is ideal especially for countries that do not fund its people’s hospitalization. Having a sick family member can cause the household to become poorer. While healthcare is the management and treatment of illnesses and preservation of health through services like dental and medical, some people find this a last priority.

You cannot take healthcare for granted. It is a necessity; a type of insurance wherein the health insurance company shoulders your hospitalization bills when you get sick. This can be a great relief in times of illness where money should not aggravate the health problem. Without healthcare, some patients get worse upon learning their escalating hospital bills.

Not all people get sick. No one wants to. Purchasing a health care is a manifestation of your love for self. You do buy health insurance because you know it can help you, you just do not know when. But like any insurance, it is a precautionary measure of a loss - in this case, loss of health. Forget about healthcare and all the funds you have will all be drained when you are beset with health problems.

Short-term and long-term healthcare

Today’s financial industry offers a various forms of health insurance. Some even offer to have a healthcare-investment-insurance package. The investment side it has is usually return-of-investment (ROI) that works like time deposits. The insurance aspect of the healthcare is a burial assistance in case of death which doubles in amount if an accident causes the death.

Short-term and long-term are the two types of healthcare. For short term, we have the yearly renewable government healthcare and Health Management Organization (HMO) as examples. Short-term health insurances are yearly healthcare that offers higher coverage per hospitalization but the package has to be renewed and reassessed every year especially the price. Thus, approval is done annually. This is a no sickness no money package. Short-term healthcare generally do not cover people 61 years old and up since they are more susceptible to sickness than the younger ones.

Example of a long-term healthcare is Health Savings Account or HSA. It is a healthcare that includes savings on top of the health insurance. The healthcare-turned-to-investment benefit can be stretched till the older age to serve as a cash healthcare coverage upon sickness during retirement. The key though is to buy it at a younger age.

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