Health insurance pays for your medical expenses. If you are uninsured and become severely ill and/or require surgery, your savings could be swiftly depleted. However, health insurance can be prohibitively expensive. Many individuals, families and companies are searching for ways to find low cost insurance
Step 1
Read your current health insurance policy carefully. Is it a group policy (issued by your employer, union or an organization) or is it an individual policy? What are the premiums and how often are they paid? Is it a fee for service plan (you may see any doctor you wish) or managed care (you may only see specific doctors)?
Step 2
Consider your insurance needs: Do you only need a base plan that covers hospital stays, lab tests and doctor visits or do you want major medical insurance that covers you for serious illness and injuries? Most people prefer comprehensive major medical insurance, which is a combination of both.
Step 3
Consider whether you can afford an indemnity plan that pays a fixed portion of your doctor’s fees. Otherwise, you may need a scheduled plan in which the insurance company determines the fees it covers for each procedure.
Step 4
Do you need coverage for your spouse or children? Does anyone in your family have chronic medical problems that need coverage, such as psychiatric treatment and medical supplies? Look for health insurance policies that cover these needs.
Step 5
Ask relatives, friends and coworkers for recommendations, especially those whose needs are roughly equal to yours.
Step 6
Also consult your employer's human resources staff for recommendations.
Step 7
Contact individual health insurance providers to get quotes. Carefully compare price and coverage. You may want to use an online cost insurance calculator to help with the comparison.
Tips and Warnings
- At the bare minimum, opt for catastrophic coverage provided you are in reasonably good health. Premiums are generally very low. However, you will pay out of pocket for minor emergencies and for checkups. In the event of a major medical crisis, your deductible will be comparatively high, so be sure your finances will be able to cover it if needed. Opt for a guaranteed renewable policy so the insurance company will keep covering you as long as you pay your premiums. Those premiums may increase over time, but your coverage will continue. If one policy includes a specific coverage but another does not, ask an insurance company representative if there are ways to include the coverage. The insurance industry is competitive and often confusing for buyers. Another plan may offer the coverage you are seeking.
- The lowest price health insurance policy is not necessarily the best one for your needs. For example, if an HMO requires you to visit a doctor far from you or if your policy does not cover your preexisting condition, you may spend a lot of money needlessly. If you are getting a new individual health insurance policy, you may be required to have a physical examination. Never misrepresent your health condition in order to get a lower rate; this could be considered insurance fraud, a felony crime.
References
- Health Insurance Quote Comparison
- Health Insurance Basic Information: Ask Suze…about Insurance; Suze Orman; 2000
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