Question

Imagine a world where health insurance doesn’t exist. On the upside, you don’t have to pay any health insurance premiums! On the downside, if you become sick you’re responsible for the full amount of your healthcare. What if you had children? The risk of unknown payments for healthcare would require all of us to save a much larger amount of money to set aside just in case we needed it. This burden would be in which of the following categories?

Answer 1

Need for larger emergency funds

Step-by-step explanation:

As described in the question, a health insurance plan has its own pros and cons. A health insurance plan relieves our tension about the payments if costly medicines or treatments are required. On the other hand, if a person does not utilize the health insurance as he's not getting sick then it seems as just a waste of money to pay for the insurance. However, if a person does not have insurance then he will have to figure our saving money for any kind of emergency. Also, this sum should be large as we know that without insurance treatment of emergency kind situation would require a lot of money.