Finance

Important Investment When You Start Earning

Once you join the workforce and start earning a living wage, it may be hard for you to understand why health insurance is such a substantial investment. The premiums you must pay to have coverage may seem like they could be spent better elsewhere. But the facts are that you need to have coverage even when you are young because you never know what may happen from day to day.

The Medicare program will cover you up to a certain point of earning, but after that, you will end up paying an extra fee at the end of the year, which can end up being more than what it would have cost you if you would have taken out a private health care policy. This is because the fine you will be required to pay will be based on a percentage of your yearly earnings. The more you make, the bigger the fee will be.

As a young adult, you are likely to experience good health. However, there are some medical investments that you should make to ensure that you maintain your health into adulthood. Here are the best medical investments for young adults:

1. Health insurance: This is one of the most important medical investments you can make. It will protect you in case of an unexpected illness or injury and help you pay for preventive care.

2. A healthy lifestyle: Eating healthy foods, exercising regularly, and avoiding risky behaviors like smoking and excessive drinking will help you stay healthy and avoid costly medical problems down the road.

3. Preventive care: Regular check-ups and screenings can help catch potential health problems early, when they are often more treatable. immunizations can also help prevent serious diseases.

4. A personal emergency fund: This will help you cover unexpected medical expenses, like a high deductible on your health insurance or an unforeseen illness or injury.

Source: freepik.com

With that being said, there are other reasons you should invest in health care. Let’s take a deeper look into some of the other reasons you may not have thought of, so you can make a better decision on the type and amounts you decide to go with.

• Debt – Medical bills are one of the most significant leading factors in going into debt, especially when you are just starting out earning a living. One visit can put you behind on your bills by months, or even years, depending upon the type of visit you have. A health insurance plan will cover your needs, leaving you with a small co-payment that will need to be paid rather than a colossal bill covering the entire visit.

• Future Security – When you are young, the prospect of ever having a serious medical issue is not even a thought. If it is brought up, you simply brush it aside because health is the farthest thing from the mind, and it is definitely not something you want to pay money to cover when you feel like you will never use it. The thing is that you need to think ahead to the future. You never know when something will come along that requires a visit to the doctor or even the ER. Investing in health insurance from the start will guarantee that you have the coverage you need when you need it. Plus, when you ask yourself how much is private health insurance you may be surprised at how affordable it really is.

• Protects Your Family – Even if you do not have a family or partner, it does not mean that you won’t in the near future. When you have a health plan in place, it is easy to bump it up to a plan that will cover everyone in the home that is part of your family. This is peace of mind that you cannot get in any other way because it is heartbreaking when someone you love is sick or injured, and you have no way of getting them medical help.

Source: freepik.com

These are three main reasons why investing in a private health care plan is essential as soon as you start earning a living. The younger you start, the better off you are. Keep in mind, though, that you can stay on your parent’s health insurance policy until you are 26, so take the time to figure out if it is a good move to have your own right away or if maybe you should wait a while until you are financially secure and ready to have your own policy.

While it’s true that young adults are generally healthy and unlikely to need extensive medical care, there are still many reasons to make sure you’re covered.

For one, accidents can happen to anyone at any time. If you break your arm or leg, you’ll be glad to have insurance to cover the cost of surgery and rehabilitation.

Secondly, even if you don’t have any major health problems now, that could all change in the future. As you get older, your risk for chronic conditions like heart disease and diabetes increases. Having insurance means you won’t have to worry about how you’ll pay for treatment if these conditions develop.

Finally, having health insurance gives you peace of mind. Knowing you’re covered in case of an emergency can help reduce stress and anxiety about what might happen if you do get sick or injured.

Source: medium.com

A recent study found that nearly 30% of adults in the U.S. don’t have health insurance. This number is even higher for adults under the age of 26 (nearly 40%).

Having your own medical coverage is important, so you should do so as soon as you can get your own policy. Make sure that when seeking a policy, you go onto an online comparison site and let them do the hard work. They will match you with some of their partner sites that will work with you, leaving you with nothing more than to compare each offer. Always compare the benefits and costs to ensure you get the perfect policy.

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