Money in Real Life · 45 sec
Health insurance
A practical idea for making clearer everyday money decisions.
The useful idea
- The useful idea
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses.
- How it works
As with other types of insurance, risk is shared among many individuals.
- Why it matters
By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the
Why this matters
Use Health insurance to compare the trade-offs before committing money.
Try this
Use Health insurance to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Health insurance?
- Why it matters
- How it works
- The useful idea — correct
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses.
General education only — not personal financial advice.