Important Issues When Purchasing a Health Insurance Plan

Like any purchase, with few tips purchasing a health plan can save you lot of money and provide a greater coverage. Health insurance plan is an insurance policy where in you have to pay a periodical premium ( amount of money) to the insurance company. The insurance company will in turn pay the medical costs when you fall sick. There are hundreds of individual health insurance plans and family health insurance plans available in the market today. Some points should be paid attention to before purchasing.

Spouse’s health insurance cover. If your spouse is being provided a health insurance plan then you need not buy one. Your spouse can opt for a family health insurance plan. This will increase the premium marginally and provide health insurance cover to the entire family.

Family health insurance plan. Family health insurance plan is cheaper compared to individual health insurance plan.

Coverage. Short term health insurance plans are significantly cheaper than the long term ones. However you have to renew your health insurance plan after the period of expiry and the premium gets costlier as you age.

Co-insurance and deductibles. These are parts of the bill that you have to pay and the rest is paid by the health insurance company. if the coinsurance and deductible is higher then the premium is a small amount. It is wiser to keep the co-insurance on the lower side. Coinsurance is the percentage of the bill that you will be paying. Incase of a major illness or accident the medical bills will be very high and the coinsurance will be correspondingly higher.

Indemnity plans. These are health insurance plans that offer a broader choice of doctor or hospitals. However they are costlier compared to managed care plans and you have to pay the bill yourself and later claim the costs. Also you have to pay the deductibles and co-insurance.

Managed Care plans. These are plans in which the insurance company has a tie up with a network of doctors/hospitals who provide medical treatment at a reduced rate. The insured has to visit them. These plans are cheaper,

the paper work is very less and you do not have to pay the bill upfront. The doctor claims on your behalf from the insurance company. however if you visit a doctor outside the network you have to pay the deductibles and coinsurance.

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