Buying individual health insurance Advice, Tips, and Fun
Buying individual health insurance
Hello, I'm Brian. Everyone knows that you have to be exceptionally careful before buying individual health insurance, especially in today's current market.
That's why we've created this special page within the site to advise on how to go about buying individual health insurance with the best benefit to you and the least risk.
Buying individual health insurance refers to getting yourself insured against future medical expenses. In simple terms, you pay a regular premium from your savings now, against which your medical expenses either wholly or partly will be paid by the insurance company if and when you need it in the future. The term medical expenses include:
*Doctor Check Ups, Hospitalization charges, Tests and other procedures, Surgery, Home Care Charges, Other treatments
Buying individual health insurance ideally involves assessing all the available insurance schemes and selecting one which suits you and your medical needs the most in terms of its coverage and costs. The most common problem you might face while buying individual health insurance is understanding the various health insurance jargons or terms so as to compare one scheme with another. The most common terms that you would come across and have to know the meaning to are:
*Sum Assured, Insurance premium, Deductibles, Exclusions, Pre Existing conditions, Co-insurance, Waiting Period, Grace Period
The insurance premium refers to the fixed fee or charge that you need to pay for the insurance policy. You might pay this annually, quarter or monthly according to your preference.
Thirdly, deductibles refer to an amount that you need to pay before using any benefit from the insurance. For example, during a medical claim, if you have a deductible of $200 say, then you need to pay this amount first before getting any benefits. The higher the premium you pay, lower will be the deductible amount. Moreover, different policies have different coverages. A policy might cover doctor visits without the deductible amount.
In buying individual health insurance, the two primary things that the individuals looks for is the sum assured and the premium. The Sum Assured refers to the fixed amount that the insurer agrees to pay to the insured in case of any medical emergency. That is, it is that sum which the insurer assures the insured to pay against the regular premium that the latter pays.
Exclusions on the other hand refer to aspects that are not covered by the health insurance policy. Different policies have different coverages. One might cover doctor visits and home care while others might not.
Fifthly, a clause for pre-existing conditions is a very important aspect to look into while buying individual health insurance. This refers to the previous medical history and existing medical issues which some plans cover while some may not. For example, if you already have cancer, some insurance policies will not cover you while some may, with a considerably higher premium.
Sixthly, co-insurance refers to the portion that is the insured’s responsibility. That is, if your health insurance policy has a 75/25 co-insurance, it means that you need to pay 25% of the amount while your insurer pays the remaining.
The two time periods offered by your insurer are the waiting period and grace period. While waiting period refers to the time after which you can claim for medical coverage, grace period is the time that the insurance company offers for your premium payment after the original due date before they cancel your policy.
Now that you know all the terms used in a health insurance, what are you waiting for? Go analyze the various policies available and get yourself the best one to take care of you in the future to enjoy a tension free life.
Insuring yourself against the possibility of the onset of a health problem is important, especially since medical bills are expensive nowadays. Buying individual health insurance is typical of citizens who are either unemployed, self-employed or part of a small company. Medium-sized to large-sized companies offer group health insurance as mandated by the law as well as a benefit for being an employee. Usually, you would be required to pay a portion of the health insurance.
But if you do not belong in a company, buying individual health insurance of your own is necessary. It may be costly to regularly pay for the insurance, but it is actually much less expensive compared to shouldering all your medical bills by the time you are rushed to the hospital. There are several insurance companies that offer individual health insurance, such as Blue Cross – Blue Shield, Kaiser Permanente and ehealthinsurance.
Once you have contacted an insurance agent, you can discuss the insurance plan and coverage that best fits your needs. Usually, an insurance agent will assess your health risk by knowing your lifestyle, your work environment and your family history. When buying individual health insurance, you must truthfully answer the questions regarding these categories because this is what the agent will use to find the right individual insurance plan for you.
First, with regards to your lifestyle, you will be asked questions like diet, smoking habits, drinking habits, the drugs that you have used for your past illnesses and more. The insurance company would also like to know what health problems you have had in the past and the health problems that you currently have.
They would also inquire about your work environment. Being in a place that occasionally or regularly exposes you to hazards, like chemicals and radiation, would increase the likelihood of you becoming sick. The higher the risk of you getting sick, the higher the premium you would have to pay. However, if there is little possibility of you becoming sick, the lesser the premium that you have to pay.
Lastly, they would want to know what illnesses or health problems struck your family members. This way, they can assess the likely health problems that you might incur in the future.
After the agent has assessed your condition and have presented you with health care plans, there are some things that you have to do as well. You would have to go through the entire plan offered to you. You should look for the following items:
Amount of premium you need to pay.
Whether the payment mode is bi-monthly, monthly, quarterly and so on.
How much or how long you are required to pay before you can avail of the health insurance.
What health services are covered and what are not.
Health coverage limit. (annually or per incident)
Provisions regarding your pre-existing condition
Which doctors, clinics and hospitals are included in the health insurance company’s network? This is very important especially if you already have a doctor that you frequently visit.
These are just some of the things that you need to be wary of when buying individual health insurance for yourself or for your close family members.