What Is the Benefit of Health Insurance?


Quick Answer

The advantages of having health insurance are being able to avoid high medical costs, paying less for qualifying in-network health care and receiving free preventative care, according to HealthCare.gov. Health insurance also allows an individual to avoid certain fees associated with health care.

Continue Reading
Related Videos

Full Answer

With the passing of the Affordable Care Act, an individual who doesn't have health insurance and can afford it must pay a penalty fee, notes U.S. News & World Report. In 2014, the penalty was $95 per individual or 1 percent of the individual's annual income, whichever is higher. The fee is to increase to $695 or 2.5 percent of the individual's annual income by 2016.

An individual who has health care can avoid the high cost of a serious or sudden illness, states U.S. News & World Report. These high medical costs can lead to bankruptcy, a ruined credit history and a financial setback that lasts for several years.

Prostate cancer screenings, mammograms, vaccinations and other preventative care methods are often covered by heath insurance without requiring the policyholder to pay a copay, according to U.S. News & World Report. Preventative and routine care is designed to catch health problems early so physicians can start treating them before they become serious and more expensive.

Learn more about Health Insurance

Related Questions