Many people believe that paying health-care premiums is a waste of money. After all, why should you pay premiums for years and years if nothing happens? After all, our ancestors never had health insurance and are still in good health. Why pay for something that is an illusory risk? These health insurance businesses are just interested in making money, duping people with slick presentations and brochures, and eventually rejecting claims.
Why not just save that money and live your life? Some people also argue that they can save up the premiums each year and utilise the money to cover the fees if they needed to be hospitalised after 10 years.
This is exactly how millions of investors feel, and it is one of the reasons why insurance penetration in our nation is so low. I’m sure you’ve encountered someone at work or in your family who just rejects the concept of getting health insurance just because they have health insurance coverage from their place of work. Let’s find out why some people may think that way!
- Need for Instant Gratification
Many individuals have a transactional benefit attitude, in which they expect to receive some concrete advantage as soon as they pay. Like you pay for a movie and then watch it, pay for a chocolate, and eat it, order a mobile phone & get it delivered.
But in case of health insurance, you don’t get instant gratification. What you get instead is a promise, a guarantee that your medical bills will be taken care of in the future, if need be.
It’s somehow very hard for some people to draw benefits in terms of future probability and that is the reason why they say, paying premiums is a waste of money.
- Invincible State of Mind
Some people are in this habit of having a fake confidence over themselves that nothing bad will ever happen to them. Some call it manifesting, we only call it being overconfident.
We saw so many lives taken by the pandemic, a lot of them too young to have any continuing ailments. Hence it is a little big ignorant thinking nothing bad will happen to someone just because they believe it won’t. It’s always wise to expect the best but stay prepared for the worst.
- Paying Premiums Goes to Waste If Nothing Happens
It’s rather silly to think that premiums go to waste if nothing bad actually happens to you and you’re unable to utilize the sum assured. The health insurance, for which you paid the premiums, gave you the safety cushion and the peace of mind that in case something was to happen then you’d be financially secure and will be able to provide yourself or your loved ones the care they deserve without going bankrupt or depleting your lifelong savings. Is that peace of mind worth nothing? We don’t think so. Infact, it’s the best-case scenario if your health insurance goes to waste.
- The Capacity of Risk Taking
Everyone has three basic options on how to deal with risk. They can choose to either bear the risk, reduce the risk, or transfer the risk, whichever suits them well.
Health insurance is all about passing the risk of extremely large medical expenses to insurers by opting to pay a yearly premium. If someone refuses to pay the premium, it suggests they are willing to take the risk of having to pay a large quantity of money for medical reasons eventually.
And it might occasionally be so large that it wipes out your years of hard work. Sometimes you have a sickness that necessitates frequent or regular hospitalizations, and it can be financially devastating. So, it’s really onto you, what exactly you want to deal with the risk everyday life poses.
We hope that we all now understand how important health insurance and paying its premium is. It protects us and our loved ones from the burden of unforeseen health expenditures. Ignorance is not bliss in this scenario, being prepared is the wise way to be.