Hello again, I’m JJ Childers with another episode of Monday Morning Mentor. The last few weeks we’ve been talking about healthcare costs. For many people, especially those who do not work for an employer who offers a group insurance plan, one solution is to purchase a private health insurance policy.
Like any insurance policy, the purpose of a private health insurance policy is to reduce the risk of loss associated with the occurrence of certain events, namely sickness or injury. This is accomplished by shifting the financial risk from you on to insurance companies. The structure and payment system of insurance companies are based on the probability of these events occurring.
Of course, one of the biggest problems with buying a private health insurance is that they can be extremely difficult to obtain by people who have a history of pre-existing illnesses. And even when one can qualify for private health insurance, the costs are generally higher than what one would pay for a group benefit because their employer is not picking up part of the costs. Still, for many people a private health insurance policy is a great way to lower ordinary out-of-pocket expenses as well as plan for a catastrophic illness or injury.
