Health Insurance – that is one of the areas almost every one of us wants to opt for but finds it a very dreaded topic to discuss. Which Health Insurance is best and why? Choosing the right insurance and checking out where to find health insurance is what makes you go out of your mind.
But, why health insurance is important? Before we can move ahead discussing what health insurance is best, it may be a good idea to check out the health insurance basics.
Why Health Insurance is Important?
Of course, none of us wants to get ourselves into bad health. But, it is inevitable and almost every one of us or someone in our family needs medical attention. A properly designed insurance plan can help you bear the cots of the healthcare requirements without having to break your bank.
If you are wondering “is health insurance required”, the factors here should help you understand the benefits offered by your insurance. Check out what makes it a wealthy option – why not, after all – Health is Wealth!
- It covers all the health benefits. The plan also takes care of all the necessary aspects of maintaining your health and takes care of all your illnesses and even accidents.
- It can help you take care of your medical costs. With proper health insurance, you do not need to worry about your medical costs.
- Some insurance plans provide you access to preventive care that would include vaccines, screenings, and checkups.
- They help you protect your savings. You need not break all your savings to meet the sudden medical costs.
- These policies provide you access to better treatment. Most of the high-end insurance plans have tie-ups with specialty hospitals and health care centers.
Having gone through the health insurance benefits, you now have made up your mind to go with a policy or plan right for you.
So, where to find health insurance? That is perhaps one of the difficult tasks ever.
What Health Insurance should I get?
Shopping for the right health insurance is a task in itself. Which health insurance is better – should you go with the low premiums or low deductibles? In case your company offers you different insurance plans, most of the offers do not have a choice. However, if your firm offers you multiple options, you would be lost for choice.
You would, perhaps, need to go through a health insurance comparison. These insurance plans can be extremely confusing. The technical jargon used in these plan documents and the terms and conditions thereof can prove to be highly difficult to understand.
These Insurance plans come in three major options. Of course, there may be a few additional types of plans, but these three form part of a wider gamut –
- Indemnity of Fee-for-Service Plans – These are also referred to as POS or Point of Sale plans. These plans offer a high degree of flexibility. Your insurance provider will only pay a predefined amount of your medical bills. The rest of the bill should be paid by you.
You do not need to specify a service provider. You can get your health services from anywhere without the need for prior approval.
- Health Maintenance Organizations (HMOs) – These plans have a list of service providers and a list of health services that will be covered. Each of the health plans come at a fixed price. Your plan will have a primary provider. Costs incurred for the specialist are not covered unless the primary provider considers the specialist necessary.
The HMOs can be beneficial in minimizing your out of the pocket expenses to a considerable extent. Most of the associated costs would be predictable and there would be no unexpected costs. Of course, all your consultations should be within the network.
- Preferred Provider Organizations (PPOs) – The plan has all the features of an HMO, but lets you opt for an out of the network consultations and treatments. Of course, when you go out of the network, you will need to spend more out of your pocket.
In case personal preference and flexibility is what you are looking for in your insurance plan, this would be a great option.
Well, we know all that technical jargon was quite confusing. The crux of the matter is with HMOs, you are stuck with one single service provider or a network of providers, but the choice of the specialist depends upon you, while in a PPO, you can choose your preferred service provider – whether within or outside the network. However, instead of living without health insurance, it is worth opting for a plan that best meets your needs.
if it is still confusing, you can consult the specialists to decide on the right way to choose a health insurance plan.
Health Insurance vs Life Insurance – How do they Differ?
Opting for both health insurance and life insurance may be a tricky situation if you have a tight budget. If your expenses tend to grow, you would begin thinking of leaving one of them. It may be practical enough to choose one of the best options.
Health insurance and life insurance have their own differences. Each of the insurance policies has its own benefits and coverages. Life insurance will pay out the benefits after death or after an agreed period. This would provide an option of financial continuity for the family even after death. A health insurance, on the other hand, can be used for covering the health-related expenditures. That way, you would be able to ensure that you can afford to meet your medical expenses.
In essence, you would need both the types of insurances. It may be a great idea to check if you limit the costs of one of the policies based on what you would need.
Before we Conclude…
Well, that was how efficient an insurance plan would be and why we recommend opting for it. Finance experts suggest opting for the 80/20 health insurance plans to ensure that you stand to gain better benefits. Analyze your needs and choose the plan that best meets your requirements.
Check out the multiple plans available at your disposal and get access to the right one that best meet your requirements. Do consult your investment adviser before taking a call though.
Disclaimer: The information provided here is for education purposes only. Kindly check the insuranc documentation for an exact update.