Having adequate health insurance is crucial; health insurance ensures that you and your loved ones will receive necessary medical treatments throughout the course of your lives. Because of the importance of health insurance, it is extremely important for you to learn how this type of insurance fits into your personal financial plan.

Health insurance is costly, largely because there is a lack of incentive to reduce costs.  But the tide is changing. Rising insurance costs have gotten the attention of corporate managements. And companies are passing on a greater percentage of insurance costs to their employees. This shift is affecting many individuals’ financial situations: as medical costs rise, individuals become less able to pay for medical care costs out of their own pockets. And so the number of people who are uninsured and under-insured continues to rise. Health insurance is important, and could be a major detraction from attaining your goals if health-related problems arise and you do not have appropriate health insurance to cover your costs.

When you have completed this section, you should be able to do the following:

1. Understand how health insurance relates to your personal financial plan.
2. Explain health insurance coverage and health insurance plans.
3. Understand the key areas of disability insurance.
4. Understand the key areas of long-term care insurance.
5. Understand how to control your health-care costs.