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As the word itself suggests, private health insurance is not something that is provided by the federal or state government.

They are usually purchased from a variety of other sources like employers of an organisation, a private marketplace or a federal marketplace. These are some of the individual entities that cover private health insurance.

private health insurance

While scouring for the different kinds of health insurance programmes, there are chances of you feeling lost. To be able to take your pick from a host of others available in the market is quite taxing if one were to be honest. Deciding to opt for a health insurance policy is just the very first step towards good health. But, what comes next is a series of several other decisions to be made.

One of those decisions is the ability to compare and contrast the different policies in the market and then purchase the one that fits your bill. While following this chain of decisions, you might come across the type of health insurance known as private health insurance. It might not ring any bells right now, but private health insurance is a real thing, and you must know all about it before you proceed to make any decision regarding health insurance policies.

The need for private health insurance

Though most of you might never require the need for private health insurance because the regular insurance policies are enough to cover the cost of treatments, yet there might be situations where you need to buy one. We are now going to examine the various conditions where the need for private health insurance arises.

If you are an young adult

Certain health insurance policies cover children under the health insurance policies of their parents only till they turn 26. The coverage after the age of 26 ceases to exist. Therefore, in such a situation, it becomes imperative that you start thinking about alternative types of health insurance if you want to be covered for treatments of any sort later in the future. Private health insurance is an alternative that you must consider getting your hands on. Check this page if you need more guidance on private health insurance.

If you are serving notice to your employer or have been fired

Private health insurance comes to your rescue when you are planning to resign or have lost your job due to downsizing. Your employer will still have to provide you with insurance benefits. However, there is also a catch that lies here. In such a situation, you might have to just pay for the cost of the insurance yourself. Your employer shall not subsidise any part of the cost because you are no longer an employee. Also, this coverage will terminate after a point of time, and thus, you might feel the need to look for another health insurance.

If you are a part time employee

This is no secret that part-time jobs do not offer any health benefits. Therefore, if you have been in a part-time job for some time now and have no plans of switching any sooner, you must make it a point to look for private health insurance plans. You cannot depend on your employees for the coverage of your treatment. You have to find your own way and private health insurance is the best way to go about the process.

If you are an employer yourself

If you have employees working under you, laws demand that you provide your employees with health insurance. It is not only laws that you must be concerned about. Providing health insurance is also a way to retain your valuable employees. Other organisations might already be providing health insurance policies to their employees. In that case, if you do not provide any insurance to your employees, it shall become very difficult to retain the employees.

For your retirement

Private health insurance policies come handy when you are planning your retirement or have retired from service already. You shall no longer be eligible for your organisation’s health insurance benefits, and you will require a new one. This is also the case where a private health insurance policy shall step into the picture and come to your rescue. You could consider this as a brilliant investment for your retirement days.

Conclusion

Not many people are clear about what purpose private health insurance serves. It has been a subject of debate for a long time now. Experts also go to the lengths of claiming that private health insurance plays no vital role in an individual’s life and only creates more complications if anything. But, only if you read up a little and try to understand the aspects that govern this type of health insurance, you might be able to decide better.


Rajhu S Goraai is a passionate stock and commodity trader. Owner at top business blog. Connect him on Linkedin.