Medical insurance is a very important asset in the U.S. It provides protection and coverage for individuals who incur medical expenses due to illnesses or other health problems. This protects an individual from paying large sums of money that drive them into poverty, or are so large they can't afford to pay for medical procedures and are forced to suffer from their illness. Individual medical insurance is one type of coverage that can be purchased.
Function
Medical insurance requires owners of the coverage to pay a set rate. This amount is determined based off risk assessments, including how likely you are to suffer a medical problem either through your own actions or heredity. Included with this insurance payment is a deductible -- this is the amount of medical costs you pay before the medical company takes over the payment of your expenses. The lower this is, the higher your rates will be.
Costs
The cost of medical insurance for an individual varies based on whether you get it through your company as a benefit or whether you are paying for it on your own. Generally, health insurance costs in the hundreds of dollars per month, although you can get plans for less than $100 depending on the type of coverage you want. Individual plans also tend to have low deductibles, sometimes as little as $100 to $300, according to the Federal Citizen Information Center.
Benefits
Whether you get in a car wreck, develop cancer or simply suffer from a minor condition requiring medication, medical insurance helps cover your costs. This can protect you from financial ruin, in which case you might have wages garnished, be forced to sell your assets and/or need to file bankruptcy. It could also lead to your being denied health care, which could be dangerous to your health and potentially fatal.
Considerations
An individual health insurance plan only covers one person. This is different from family or group insurance in that, if a member of your family requires medical services, your specific plan will not be applicable to any costs they incur. However, they will be covered if you have a medical insurance plan separate from the one they share, which sometimes happens due to advantages in coverage and costs.
Where to Buy
The best place to buy an insurance plan is through an employer, which often helps pay for the coverage. This is the cheapest solution for most people. You can also get insurance plans from private companies independent from an employer, although these will cost more. Government programs are also available to individuals suffering from unemployment, or those who don't quality for medical insurance from private companies. These people often enter risk pools, where coverage is similar to medical insurance.
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