Introduction to Health Insurance for Kids and Teens
This video explains the concept of health insurance in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about medical insurance, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- What is health insurance
- Is medical insurance premium same for everyone
- Different types of health insurance
- Upper limit / maximum reimbursement for medical insurance
- Does the health insurance premium increase after a claim
- Where to buy medical insurance
- How long is health insurance valid for
- When can you buy health insurance
- Exclusions for health insurance
Howdy Wall St. Willy!
When I went to the doctorsโ they asked me for my health insurance.
But what is health insurance anyway?
Health insurance is insurance that covers health related expenses like a doctorโs visit, hospitalization, medicines and many more.
But to get this facility you have to pay a certain amount to the health insurance company on an ongoing basis which is called a premium.
Is the premium the same for everyone?
No, it is different for everyone and can depend on many factors like the kind of insurance you buy, your age, your health condition, your employer and many more.
Well what are the different types of health insurance?
Health insurance can be broadly classified into two types: one has a deductible and the other has a co-pay.
The deductible one is where you need to pay the expenses up to a certain amount every year. For e.g., $2000 before the insurance company starts paying for your medical bills.
For example, if you have $2000 of hospitalization, youโd have to pay all of that $2000 but if you have anything after that then the insurance company will pay for it because you have already paid your deductible.
In copay, you have to pay a certain amount every time you visit a doctor or a hospital.
For example, if the copay was $50 and the doctor visit costs $200, youโd pay $50 which is the amount of the copay and the insurance company would pay $150.
Would the insurance company pay all of the medical bills even if itโs a lot of money?
There might be a maximum on the amount the insurance company would pay in a year plus there might also be an upper limit on each category of expense.
For example, a health insurance policy might say that the hospital room that you have could not be more than $200 per night. If itโs more than $200 per night the insurance company would only pay $200 and you would pay the remaining amount.
Is your premium returned by the insurance company if you donโt fall sick or donโt visit a doctor?
No. You donโt get back the insurance premium if you donโt use the insurance.
Does the health insurance premium go up if you fall sick a lot?
No. The premium will not change based on how often you use the insurance.
Who should buy health insurance?
Everyone should have health insurance to protect themselves from the financial impact of healthcare related expenses.
Where can I buy health insurance?
Most companies offer health insurance to their employees at a specially negotiated rate as a part of the benefits package.
But, if your company does not offer health insurance or you are self-employed, you can buy health insurance yourself.
But weโll cover that separately in another video.
How long is health insurance valid for?
Health insurance is usually valid for one year.
Well, when can I buy health insurance?
Health insurance is usually bought during a time called the open enrollment period, which is usually between October and December.
During this time the insurance can be bought for the following year. For e.g., in October and December 2018, youโd buy health insurance to cover the entire year of 2019.
Are there any expenses that most health insurance companies do not cover?
Yes, many health insurance policies do not cover the procedures that are not medically required. These are elective procedures, like cosmetic surgery.
Some pre-existing illnesses are also not covered.
Health insurance also does not cover the treatment of your teeth or eyes as we have to buy a separate dental and vision insurance for that.
But thatโs a topic for another time.
Thank you very much for telling me about health insurance, Wall Street Willy.
You are welcome, Sooper Cooper.
Remember, Finance is Your Friend!