Although the risk of buying private health insurance is relatively low, there are disadvantages to it. The truth is that the risk you run if you have no health insurance is a lot greater than having any type of health insurance policy available. Medical costs are extremely high and if you don’t have insurance you may find yourself in a lot of trouble in a variety of ways.
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There are many types of individual and family medical insurance to meet your needs. Understanding them is a whole other issue. The terms and plans can be very confusing. If you don’t read the fine print carefully, you may find that you don’t have as much health insurance coverage as you thought.
Buying Private Health Insurance
Who should buy private health insurance? Private health insurance is not the best option for everyone. It is almost always smarter to take advantage of a group health insurance plan of some sort. Most group health insurance plans are offered through an employer, but there are other professional organizations that make such plans available for their members as well.
If you work for yourself, you will need to compare health insurance plans for self-employed people. This is also the case for many unemployed individuals, although COBRA may be an option for those recently laid off. Other people who may need to get health insurance privately include students who are no longer eligible under their parents’ plan, part-time employees, independent contractors or freelance workers, or employees whose companies do not offer group health insurance.
Disadvantages of Private Health Insurance
What are some disadvantages of private health insurance? There are a number of disadvantages to private plans that make them less desirable than group ones. A big one is cost. If you have an individual health insurance policy you also will more than likely have a higher deductible, and higher copayments as well. When searching for a policy, keep in mind that some companies raise their rates quarterly. This means that what you thought was your premium will increase over the course of a year.
Because the risk is not spread out among a big group of people, health insurance companies charge you more as an individual for private health insurance coverage.
One disadvantage of private health insurance is that if you have had health issues in the past, this will affect your insurance. Whether the issue was a onetime thing or a chronic condition, there are a number of things that may happen. Your application will either be denied or you will be accepted but those particular issues which are documented in your medical health records will be excluded.
Another disadvantage of individual health insurance is that many people choose limited coverage in order to keep the premiums low. This may include deductibles that are higher or limits on services that are covered. Although this may save you money on a monthly basis, if you end up needing health services it may cost you a lot more.
In order for you to get the best policy it is important that you understand all of the terms. The Insurance Information Institute is a good resource and can answer a lot of questions you may have.
Finding Reliable Private Health Insurance
How can you find reliable private health insurance? If you are looking for health insurance it is always a good idea to compare more than one company and their plans. Each company may be able to offer different things and one will fit your needs better. Health insurance varies from state to state according to the particular state regulations.
You can contact health insurance companies directly, compare them online, or use an insurance broker who has access to quite a few companies. Compare not only prices but the different types of plans and what exclusions, if any, will be included on the plans. Experts tell us time and again that a health insurance comparison will save you money.
You also should check with an insurance rating company such as A.M. Best to see how the companies rate financially. You want to choose a company that has a strong rating- preferably one with an A or better. It should also have a future outlook that is strong and stable. This is a good indicator if the company will be around for awhile and what type of assets it has to cover medical claims.
Contact your state’s Department of Insurance for a list of health insurance companies. Health insurance is important and you need to do due diligence to find a good one to avoid possible risks.
You can start to assess available health insurance plans and benefits today by inputting your ZIP into the FREE quote tool!