Very simply, so you can pay your medical bills. Assuming you are a normal healthy human being living an accident and illness free existence, you may not require health insurance. The problem is that we live in a high accident rate and virus ridden world and things tend to go wrong. Remember Murphy’s Law?
A single accident resulting in a broken leg or arm can cost you a fortune. You arrive at the hospital and are rushed from one department to another, all checking to make sure you are all right. But each stop costs hundreds. How will you pay? Health insurance guarantees that the bills will be paid.
Health insurance plans typically place limits on how much a member is required to pay out per year for his or her healthcare. This limit is often referred to as an out-of-pocket maximum. Once you've contributed this maximum amount toward your healthcare, the health insurance company typically covers all other costs for the remainder of the benefit year. If you're concerned about what may happen to you in case of a serious illness or injury, you may wish to pay special attention to the out-of-pocket maximums for the health insurance plans you're considering.
