Summary of this article
The video shows the importance of having health insurance as a financial cushion against medical uncertainties. Many people bought health insurance after Covid-19, but a common concern now is: “If it doesn’t cover my diabetes, why should I buy it?” This is due to existing conditions, such as diabetes, which are considered pre-existing illnesses, and typically come with a waiting period.
Nidhi Sinha, Editor at Outlook Money, explains that pre-existing conditions come with a waiting period, typically 1-4 years, before they are covered under most policies. Insurance is meant to protect the future, not necessarily address past health issues. If all conditions were covered from day one, everyone would file claims immediately, which would collapse the system financially and operationally.
Health insurance works by collecting premiums from a large number of people, most of whom may not make claims. This allows the system to assist people who do experience unforeseen medical crises and need financial support. Insurance protects against future illnesses and accidents, and it will eventually cover pre-existing conditions, even if they aren’t covered right away.
