10 Important Things You Need to Know About Health Insurance

When you want to secure yourself and your family from unforeseen risks, you have to buy health insurance. Protecting you and your loved ones’ financial wellbeing is a good investment, but finding the best health plan can sometimes be intimidating. Confusing and hard to understand the terminology, also known as policy wordings, makes the whole process difficult, and counterintuitive.

There are things that you want to take into consideration before buying health insurance. Of course, money is one of them. It all comes down to how much you want to and are ready to pay. The more you can afford the better health program you’ll get.

If you don’t know what’s the difference between Medicaid and Medicare, and you have no idea what does “deductible” means, don’t worry! Here is some basic yet crucial information that you should know before choosing health insurance, that will best fit your needs.

1. Health Insurance Premiums

A health insurance premium is the amount of money that you’ll have to pay to be able to use the coverage offered by an insurance policy. The amount of payment depends on various factors. Type of policy, your place of residence and the probability that you’ll have to make a claim are just a few examples.

Depending on the program you choose, you’ll have to make a payment every month, every six months or once a year.

2. Deductibles

It’s the amount of money that you’ll have to pay (in addition to premium) toward every medical expense you receive during the coverage time. After you cover a certain amount, your policy will cover the rest of the medical costs. To give you an example, when your deductible amount is $1000, and you received $10000 hospital bill, you only have to pay $1000, and the insurance company will cover most of the remaining amount.

Most often, the higher your deductible is, the lower you’ll have to pay for premium, and vice versa. If you have a lot of medical expenses, it makes more sense to choose a lower deductible plan. Conversely, if you’re in good health pick an option with a higher deductible plan.

3. Copayments

It is a payment that you have to make every time you have a doctor’s appointment. They also apply to prescription medication purchases, Emergency Room and urgent care visits. Keep in mind that the copay is not deductible, so if you frequently have to visit the doctor, it’s better to buy a plan with lower copays, but higher premium (the same situation as deductible).

4. Coinsurance

It’s the part of a bill that you’re supposed to pay after the insurance company pays its share. This type of fee is paid on top of the copay.

5. Maternity benefits

It is an addition to the insurance program which covers expenses related to delivery. In the majority of companies, it is a rider (add-on benefit). Maternity insurance helps you cover costs such as doctor and anesthetist consultation, nursing, room and surgeon fees. If you’re planning to have a baby, choosing proper insurance will help you ease medical expenses, that recently are always on the rise.

6. Lifetime renewal

Some policies offer a lifetime renewability option. When you’re getting old, chances of suffering from various illnesses increases, so it’s good to pick an insurance that provides you with this kind of option.

7. Family health insurance

One thing to do before choosing an insurance plan is talking to your family members. Keep their age and current medical condition in mind, as well as medical history. If you have children, and there’s no significant medical history, family health insurance will likely be a better option for you to choose.

8. Claim process

Look for a company that offers great customer support, and provide you with the transparent claim process. The simpler and faster it is, the better for you.

9. Pre and post hospitalization

Pick up an insurance program that covers as much pre and post-hospitalization as possible. There are so many expenses, both before and after the hospitalization period. Follow-up visits, medicine, tests that you have to undergo are just a few examples. Choose the plan that gives you the most benefits.

10. Select proper insurance amount

Of course, we all would like to have the best possible health care program. However, before you purchase insurance, consider factors such as your income or age. After all, the younger you are, the lower the sum you need. Also, think wisely, and choose the insurance which won’t consume most of your income. Affordability is an essential factor.

Parting Words

The right health insurance is crucial to have for many reasons. It’s essential to stay healthy, and when you’re insured, you can be more calm, once the illness comes. Accidents can happen to anyone, and insurance will prevent you from huge unexpected costs that otherwise you wouldn’t be able to pay. Think about your health, and remember that it’s more valuable than anything else in your life.