Explained: What is Health Insurance?

A combination of rising health care services and the global pandemic has recently seen the health insurance market expand. Once seen as more of a ‘nice-to-have’ policy, it is increasingly considered an astute financial decision instead of mere compensation for poor health. But what is health insurance by definition, do we need it, and which health plan policy is most beneficial to us?

Contents

• So, What is Health Insurance?
• Which Insurance is Best: Life or Health?
• What is the Most Basic Health Insurance?
• Which Health Insurance has the Best Benefits?
• Conclusion

So, What is Health Insurance?

Health coverage is an annual or monthly premium paid by an individual to a licensed insurer. It covers any emergency medical costs that may arise due to ill health. Different types of health insurance plans and policies cover different areas of medical expenses and medical care. It may insure you for health care costs, including medical care services, like emergency medical treatment, contribute towards prescription costs, and even pay for operations. Health insurance coverage can differ significantly from one nation to the next. This is due to the differences in how national health care services are organised and financed. This form of insurance is sometimes confused with life insurance, although the two are entirely different, as shown below.

Which Insurance is Best: Life or Health?

Life insurance differs from health insurance as it exists to compensate your dependents upon your death, most commonly taking the form of a lump sum. It ensures your partner and children are not left financially bereft in your absence. As to whether health or life insurance is ‘best’, that’s an impossible question to answer. The two guard against different circumstances, which we will all experience at some point in our lives. As a result, both health and life insurance will be of benefit to many people. When considering whether to take out health or life insurance – or indeed both – individuals should look at their circumstances and decide based on these. A single person in their early 20s may not consider either a life or health policy relevant at that stage of their life. But, add a partner and/or children to the equation, and one’s responsibilities change immediately. Furthermore, age brings more significant healthcare risks, so the need for health and life insurance should be reassessed regularly.

What is the Most Basic Insurance?

As with most policies, a health care insurance plan does not follow a set of strict rules. Anyone shopping around for a deal will quickly learn about many different insurance options. One insurance company’s ‘basic’ policy may be much more comprehensive than another’s. To give an example of a basic form of cover, let’s look at GasanMamo’s policies. Our basic health insurance coverage is also called our Vital Plan. It offers limited cover for both in-patient and day-patient medical care in hospitals and clinics worldwide, except in the US and Canada. This basic plan can be complemented by adding outpatient benefits for an additional annual or monthly premium. These would cover charges for GPs and consultants, together with diagnostic procedures and alternative therapies. For many persons, the Vital Plan is all that’s needed. However, if you have dependents, a more comprehensive policy is worth considering. For a full overview, read our dedicated health insurance information.

Which Health Care Insurance has the Best Benefits?

Just as with the notion of ‘basic’ insurance, you’ll find different health benefits from one provider to the next. The key to finding the correct type of health insurance is to take a needs-led approach. Make a list of your healthcare needs and those of your partner and/or dependents. Consider the near future and the likelihood that any health-related treatment will be needed. Once you’ve established your insurance needs, you can search for a policy to match them. To get the best deal, it’s vital to follow these steps:

• Declare your past and present medical history, including medically pre-existing conditions.
• Do the same for your dependents, declaring their past and present medical history, including any pre-existing conditions.
• Research insurance companies and their backgrounds to gauge reputation reliability.
• Read the policy documents, including the small print of all health insurance policies, before agreeing.
• If you’re unsure about anything, review your policy documents and ask your healthcare provider directly.

The location should also play a part in your decision. For example, those living in the UK have access to a national health service, whereas those in the US do not. As a result, more than 90% of the US population pays for medical insurance, compared to 22% of UK citizens. Remember that a health benefit to one person is not necessarily an essential health benefit to another. People have individual needs and circumstances, so seek out the policy that is most relevant to your life.

Who Needs Health Insurance?

Determining who needs health insurance ultimately comes down to individual circumstances. While a single person in their early 20s may not see the immediate need for health insurance coverage, adding a partner or children can change the situation entirely. As individuals age, their healthcare risks increase, making health insurance more important. When considering whether to invest in health insurance, it is essential to assess your current healthcare needs and the needs of those around you.

How Do You Get Health Insurance?

Securing a health insurance policy isn’t too strenuous if you know where to look. There is a wealth of health insurance providers worldwide, each with its own health insurance policies and plans. It’s important to do your research and shop around to compare insurance companies and find the policy that best suits your own needs and the needs of those around you. Some employers offer health insurance as part of their employee benefits package; it is worth asking your employer whether this is available and what it covers you for. For those living in Malta, you are entitled to access to the country’s public healthcare system. However, for exapts, this access relies on your social insurance and social security contributions. These contributions fund the Maltese public Health Care system.

What is the Cost of Health Insurance?

Te cost of health insurance varies globally. In Malta, healthcare plans can start at as little as $25 per month based on various factors, including age, gender, and occupation.  The Maltese Permanent Residence programme requires participants to purchase a health care policy starting at $400 annually. Across the world, the cost of health insurance ranges between £90 a month (UK) $7,739 for an individual and $22,221 for a family as of 2021 (USA). It is worth noting that the USA has some of the highest health care costs in the world.

Conclusion

The insurance world can be complex and confusing, but a little knowledge will prove vital when finding the right deal and navigating the never-ending list of insurance companies. Even if now isn’t the right time for you to take out insurance, a good understanding of the concept will ensure you’re in the best position to make an informed decision when the time comes. Begin your search for the right plan by looking through our clear and transparent health insurance plans on our dedicated health insurance page. GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.