Many younger people feel that they don't need health insurance. They engage in various other financial services such as having a bank account, credit cards, college loans, home loans and even small business loans but for some reason insurance and especially health insurance is seen as not being necessary. In countries that have socialized health care, having extra health insurance is not really necessary but in the United States, if you are not already receiving health insurance coverage from your place of work, it is vitally important to buy adequate health insurance. With medical costs skyrocketing, even a simple injury can drain your savings account very easily. People have gone into severe debt because of their medical expenses and that is why it is so necessary to have a good health insurance plan.

I was thinking the other day about insurance in general and was wondering how many people would buy car insurance if it was not mandated by law? My answer to that is not many. People have an illusion that they are safe drivers or that they are healthy people to whom no harm can befall. But as we have seen time and time again, bad times always come as a surprise and it is for this eventuality that you must plan. In previous articles, I talked about having a savings account to ward off debt and bankruptcy but none of this will matter if your entire savings are wiped out because you slipped on the snow and ice and broke your leg.

So if you are young and single, try to at least have some money in your insurance fund. The premiums are not that high if you are young and you will know the true worth of your plan when you eventually use it. Insurance is psychologically counterintuitive. You don't actually want a calamity to occur but that is exactly when you see the fruits of your planning. If nothing bad happens, then you remain healthy but you also start feeling a little silly for paying into an insurance plan.

We must try our best to keep our minds straight. The whole point is to plan for something bad without actually hoping that it will happen. The best way to do this is to make it a habit. Don't even think about it. Get your insurance plan set up and then do like an automatic debit from your bank account to pay for it.