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.

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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.

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