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Getting an insurance coverage for life and health has become more important in this day due to the increasing variety of unhealthy processed foods and also the new varieties of viruses and bacteria that are attacking the human bodies. You may be fit and fiddle this week and in the very next week you might get some health related problems that could be a minor food poisoning. But the minor food poisoning might make you stay in a hospital for at least three days. If you are a salaried person and the only earning member in your family, then you should always pray that you should not get in to a hospital in the last weeks of a month. In order to handle the uncertain medical expenses, health insurance comes in as a handy tool that will take care of your hospital and medicine bills.

Reasons for taking health insurance

1. The ever increasing cost of providing medical care is one of the major factors that drive you to take health insurance.
2. Another important reason to take health insurance will be the non availability of post retirement group health insurance coverage provided by your company
3. To easily manage the hospitalization expenses and expenses related to the medicines and consultation.

Benefits of taking health insurance

There are actually a number of benefits involved in taking a health insurance plan. Some of the prominent benefits include

1. Your visits to the doctor will cost less as you will be making the copay portion of the service charges to your medical service provider. This will result in cost savings of more than 50%.
2. During your visit to the medical care provider, the charges related to the different medical tests such as blood, motion and culture tests will also come down substantially, when you already have a health insurance.
3. Prescription drugs costs also get reduced by a considerable amount and you will be required to make only 20% to 30% of the prescription drug cost.
4. Charges related to Annual preventive care tests also come down drastically.
5. By taking addition coverage options for eye care, you will be required to make only a small percentage of the overall amount required to buy prescription glasses and other vision health related accessories. The routine vision test charges also come down considerably.
6. By opting for mental health coverage, you get the benefit of availing free mental health services from a mental health service provider.

Important factors that determines the contribution from the insurance company

At the time of taking a health insurance policy, there are certain factors that will have a bearing on the amount that you will be getting from the insurance provider for meeting your hospitalization expenses. These factors include

1. Deductibles

This is the amount that you will be paying upfront during your stay in the hospital. When you opt for higher deductibles, then you will be paying more from your pocket. But the annual premium that you will be paying will come down.

2. Co-Payment

This is another expense that you need to take care and pay out of your pocket. At the time of taking the insurance, you will select a particular percentage of the total medical expenses that will be made from your pocket. This is in addition to the deductible. This will further bring down the annual premium.