This is for the collegians and university students out there who are beginning to take the responsibility for the health of their financial state into their own hands. The first thing you need to know about is insurance. What is insurance? It’s another person or institution taking the risk of costs incurred by you in specific circumstances upon themselves in return for payment. Further, this is a transfer of the risk of a large loss that may be uncommon and possibly devastating. The act of entering such a contract means that you and the concerned insurer are ensuring that the risk is appraised and controlled. This means that at the occurrence of at least certain calamities, the insurer covers part or majority or even all of the expenses incurred in the case of such and such calamity being an event against which you are insured, of course.
The ‘insured’ is the person who is transferring said risk. The ‘insurer’ is the party who is taking on said risk. This arrangement works on the basis of the insurer making smaller, regular payments, called ‘premiums’ to the insurer. In return, the insurer as stated before takes on the expense when the event being insured against actually occurs. This agreement is bound by several terms and conditions to clarify the contract to both parties and to protect both parties from taking unfair advantage of each other. Several governments also provide national insurance schemes as a part of social service to the people, by taking on health and dental insurance for them.
Why do students need to buy health insurance? It is important for students to be insured so that they can access medical care whenever and wherever they need it. Even though we’re young, in great health and it doesn’t seem like any thing ominous is lurking around the corner, accidents, sudden illnesses, catastrophes do happen to anyone at any point of their lives. It’s not easy to have the kinds of funds required to invest in buying individual health insurance as a student. Buying private individual health insurance can actually be a very expensive proposition. However, this is why you should be looking at buying individual health insurance:-
• Group insurance is cheaper. But it is only given to big groups/ companies and the moment you stop being a part, you stop being covered (exception, if you are eligible for COBRA).
• In case of mishap, expediency, accident or illness when you are not part of a group, you wouldn’t have a penny to fall back on.
• As students, we’re financially vulnerable, and in case of mishap, expediency, accident or illness happening, we generally would not have enough money to cover such a substantial cost all at once. So it is better to pay in small installments for someone to take that risk and pay for you.
• Mishaps, catastrophes, illnesses and accidents don’t come with warnings. Getting insured is the first step to taking the responsibility of your self into your own hands.
The three easy steps we suggest to getting started are:
1) Seeing if your parents’ health insurance continues to cover you and for how long
2) Seeing if your college/ university has a cheap health insurance plan for students
3) In the event neither of the above are viable, contact an insurance broker or agency, see your medical checkups and tests through and start paying your premium.
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