Health insurance is very important and should be considered a basic need. Health insurance basically replaces one’s income during hospitalization or during illnesses that prevent one from doing responsibilities enabling him or her to earn an income.
Health insurance is starting to gain good popularity as more people are becoming more financially educated and while many financial literacy advocates push financial education at the same time.
Health insurance comes at different forms, give different benefits, and come at different premiums or costs. Below are some things that must be considered before getting the right health insurance plan.
Check the credibility and reputation of the company. The reputation of the company is very important and should be of utmost concern. Companies with good reputations are companies that give good and easy service, have brokers or agents who are knowledgeable and experienced and give good value for money. One way to track a company’s credibility and reputation is through its length of service.
If a company has stood the test of times for more than a decade, it is a good company. Another way to check whether a company is good or not is by asking some of its clients. Good service and benefits lead to happy clients. Because of the rising popularity of health insurance, some companies and even just individuals started to take advantage of it by starting their own firms. Though there are some that are indeed true, there are some that are just taking advantage of the boom in the said industry.
Assess amount of recurring income. The amount of regular income is important in identifying the amount of health insurance coverage. If you’re earning an average of $20 in a day, then you may want to avail a health insurance that provides a coverage of at least $20 a day in order to compensate for the lost daily income due to sickness. Getting a coverage that is too low won’t really address the need while getting a coverage that is too high will make you spend a lot than what you really need.
Check the riders or other features of the plan. Health insurance serve a single major reason and that is to provide financial support in case of sickness or other health related issues. However, companies add other benefits and features in order for them to be a cut above the rest and make their products more superior than others. Some additional features are doubling the insurance coverage, providing out patient services, and even free consultation and regular check ups.
Review plan terms
Check the financial side of the plan. The major financial side of a certain plan are the premiums needed to keep the plan enforced and the amount of coverage, especially on a daily basis and the hospitalization benefits. Normally, the amount of premium is just around 10 to 20 percent of the coverage amount. The length of payment is also critical. Some plans are renewable yearly which means that premiums are increasing every year but the obligation to pay is only good for a year. Some plans offer a limited payment period but longer coverage period. For example, a plan payable for five years can provide a coverage of up to 10 years.
Evaluate the accredited physicians, clinics, and hospitals. This is equally as important as any other else in health insurance plans. Normally, a health insurance plan is not being honored in all hospitals or by all doctors. Very good health insurance companies have wider scope hence they have more partner hospitals, clinics, and doctors compared to new or not so good ones.
Check the coverage of the plan. Health insurance plans don’t provide 100 percent coverage for illnesses. Some companies cover a specific illness while some don’t. Some even specialize in some illnesses that other health insurance companies don’t provide coverage to. Before getting a plan, check what are the inclusions and exclusions of a certain plan and be sure to get one that provides coverage for your needs.
The approach stated above is the top-down approach; this means that in assessing a health insurance policy, it is being looked at a general point of view before scrutinizing the details. Ideally, the best health insurance plan is the one that is being provided by a very reputable health insurance company, provides coverage to all your health concerns and is priced reasonably.