Having good health insurance coverage is critical in order to protect yourself and your family from a financially catastrophic illness. Insurance is commodity you buy to hedge against the unexpected. The biggest obstacle that stands between many people and having good health insurance is the cost.
Most employers offer to carry insurance plans for their employees and even their family members in many cases. However, it still might be a good idea to get additional insurance on your own. You also may not have a choice if your employer does not provide insurance. For those who are self-employed, health insurance is entirely up to you.
How do you choose which plan is best for you?
First, is to determine what your budget can afford. There are two key considerations when making an effort to identify an affordable insurance policy.
∙ What can you afford for monthly premiums?
∙ Can you afford high deductibles at the beginning of each year?
Determining if High Monthly Premiums Will Work For You
Plans with very high monthly premiums usually cater to those with a consistent income each month. If you are married and have been employed by the same company for a number of years, you could do well with a high monthly premium plan.
The greatest benefit of a plan with high monthly premiums is that you avoid high deductibles and will be unlikely to encounter the challenge of owing a lump sum payment in the event of major illness.
Determining if Annual Deductibles Will Work For You
On the other hand, you might feel comfortable taking on an insurance plan with high deductibles and much lower monthly premiums. Deductibles are the amount of payment required by the insurance company as upfront payment prior to paying out their portion of claims.
This payment option is ideal for those who may not have the regular monthly income to support a high monthly premium type plan. If you rarely visit a doctor, your health insurance will protect you from financial catastrophe, while also saving money on a monthly basis. Set aside an emergency fund to pay for any expenses up to the point that you meet your deductible.
With a lower deductible plan, you will be able to make doctor visits, have a routine physical, and even deal with the additional expense of minor surgeries and periodic lab tests.
Two Other Important Things to Note
1. Good coverage is well worth it. Whichever plan you choose, it is absolutely critical to have the best possible coverage your budget can handle. In the event of a medical emergency, a plan with good coverage has you covered which offers peace of mind during a stressful time. You’ll know that the insurance company has you covered.
2. Look for coinsurance. A coinsurance plan generally adds up to the insurance company paying 80% of the medical fees and you paying the remaining 20%. This type of arrangement can be found in plans that have either a high deductible or high monthly premiums. It all depends on what coverages the insurance company can provide.
Use Online Resources For Your Search
Finding the most affordable health insurance plan can be as simple as doing an online comparison. There are dozens of websites you can visit to compare the services of different insurance companies.
Once you’re able to compare side-by-side, you’ll have the ability to decide which plan your budget can afford. Health insurance is never something to count yourself out of. It is absolutely essential and can be affordable if you weigh all your options and spend enough time looking at them thoroughly.