Health insurance is a contract between an insurance company and a policyholder. The insurance company contracts to cover a certain percentage of the medical expenses of the policyholder as long as the policyholder pay the premium agreed upon periodically. Health insurance covers losses from medical expenses, disability, accidents, and many other health issues.

The rise in health issues as a result of the many irregular habits developed to cope with the changing society makes having a health insurance policy a necessity. Health insurance is not a luxury. Every individual needs health insurance.

There a lot of things you have to know and factors you have to consider when buying a health insurance policy. This article outlines the top three things you need to know about buying health insurance are:

Buying Health Insurance Protects Your Personal Finances

Having a health insurance policy is evidence of proper planning for your finances. Health insurance is very important because it protects you and your family from unexpected medical expenses. Having a health insurance plan is like having a double-edged sword, protecting your health and your finances from getting drained at the same time.

In addition to that, health insurance providers negotiate with hospitals to get lower medical fees. This makes the medical fees you have to pay a lot cheaper than what you would pay on your own. Even when you have to pay for co-pay or deductibles, the amount you will end up paying will be very much subsidized.

It is important to state that having a health insurance policy does not absolve you from paying for your medical expenses. Your health insurance provider pays for a certain percentage of medical fees. There will still be some out of pocket expenses left for you to pay. These payments can either be deductible or co-payment.

The deductible is the amount specified in your insurance contract that you have to pay out of pocket at the begging of each year for your health care services before your insurance company can start paying its own percentage. The insurance provider cannot pay until you have paid up to the amount stated in the contract. For example, if the deductible in your policy is $1,000, you must have spent $1,000 on health care for the year, before the insurance policy provider can start paying its percentage.

Co-pay on the other hand is a fixed amount you have to pay to the health care provider for services rendered or prescription each time you pay a visit to the doctor. If you do not decide to use co-pay, then you might need to pay coinsurance. This is the percentage of costs you pay after you’ve met your deductible. The difference between co-pay and coinsurance is that co-pay is a fixed amount while coinsurance is a fixed percentage.

Another financial benefit of health insurance is the tax benefit you get from paying the premium out of your income.

There Are Different Policies Available

When buying health insurance, you need to take note of the fact that there are different policies available. Policies vary with companies. In each company, policies vary with prices and the amount of coverage. You need to compare the policies available and the different insurance providers available. This will help you make an informed decision when choosing a policy and your preferred health insurance provider. You will need to choose a policy that suits your budget and health needs.

The type of policy you pick will also depend on whether you want an individual plan or a family plan. Where you have a family and you need a family plan, in calculating the premium and coverage, the insurance provider will take the age, health history and of the oldest person into consideration, and your family’s health history. If it’s an individual plan, the premium will be calculated based on your age, personal health history, and some other factors that the insurance provider will take into consideration.

Most policies have additional benefits attached to them. There are certain perks attached to buying a health insurance plan. Perks vary with each insurance provider. You will need to compare different insurance providers to find out which one of them has the perks that suit your need. Some benefits include rides to medical appointments, free counseling, video conference, gym membership. Examine the perks available to determine which perk you will need so that you can benefit adequately from the benefit.

It Is Important To Buy Health Insurance Early

It is very important to buy your health insurance policy as early as possible. This gives you the ability to buy a plan that has all the features available even though you do not need it at the point of buying the health insurance policy. These features will come in handy with time, bearing in mind the unpredictable nature of health.

Buying health insurance early is better financial planning. Financial experts recommend that you can even purchase your health insurance policy as soon as you turn eighteen years old. The younger you are, the better your health is assumed to be. Thus, cheaper health insurance than buying the policy when you old. At a young age, you can get a comprehensive plan for an affordable price. This comprehensive plan will cover pre-existing diseases and any disease that will be diagnosed later. You get to enjoy the benefits whenever the need arises.

There is however no age restriction on when to buy a health insurance policy. They can enroll at any age. The reality is just that the older you get, the higher the premium payable on your health insurance policy will be.


Every individual needs health insurance to provide financial assistance for unplanned medical expenses. Picking the right plan is a chore that must be done carefully to ensure that you benefit fully from the policy you get. You should choose a policy and provider that suits your medical needs after taking every factor into consideration.

If you’re exploring health insurance or looking for alternative healthcare plans, Life Insurance, or supplemental insurance plans feel free to reach out to our professional agents and see what program or programs might be right for you, that can help you through this time.  Call Vivna, Inc. today to learn more here: 866.793.2301