Health insurance is one of the most important financial investments in your life. But, because of the complex nature of insurance policies, choosing a policy is often a daunting decision. The endless clauses infused with jargon and seemingly infinite options to choose from are all a part of this essential step to safeguard yourself and your family from potential health issues.
Ken Maynard Insurance Brokers offers insurance policies from a wide range of reputable insurance companies. We provide our clients with policies that suit their needs by taking into consideration all the variables that come into play in their circumstances. In this blog, we’ll discuss a few general tips that will aid you in choosing the right health insurance.
Here are five things to keep in mind while purchasing health insurance:
Amount of Sum Insured The first thing you have to consider when buying health insurance is the sum insured. This is basically the maximum amount of money you are liable to receive as coverage in the policy duration. To correctly estimate the amount of money you need to draw up your health insurance for, you have to take into consideration your age, any pre-existing medical conditions and the ever-rising costs in medical care. It is always better to go for higher coverage but the premiums you have to pay should not be a strain on your wallet. If you are young and have no ailments, you can choose a policy with smaller coverage. However, keep in mind that medical costs are increasing, so when you renew your plans, calculate the sum insured to adjust to inflation.
Deductibles, Co-Pay, Co-Insurance and Out-of-Pocket Maximum Insurance companies require you to pay for healthcare services out of your pocket until you reach a previously agreed upon limit that is established in your policy. This includes deductibles, co-pay, co-insurance and out-of-pocket maximum. Policies with higher premiums offer lower deductibles and those with lower premiums charge higher deductibles. When you are choosing a policy, make sure you check all these thoroughly and calculate the financial risks before settling on a policy. If you are healthy and do not need routine medical care, you can go for a policy that has a low premium. However, keep in mind that the deductibles will be very high and if you need expensive treatment, you might have to fully pay for it out of your pocket.
Waiting Period for Pre-Existing Ailments All insurance policies have a waiting period post which they offer coverages for pre-existing ailments. These are health conditions that an individual is suffering from at the time of purchasing the policy. The waiting period can be anywhere between two to five years, depending on the insurance company. Certain ailments are completely excluded from insurance coverage, so make sure you check the list of ailments that are excluded when you purchase health insurance. Also, do not hide any medical information from the policymakers as this will lead to coverage refusal during times of emergency.
Network Doctors and Out-of-Network Coverage Health insurance companies offer coverages only if you receive treatment under the healthcare providers that they are affiliated with. Even when a policyholder is paying out-of-pocket, they will have to go to an in-network doctor to ensure that the bill is calculated towards the deductible. As under a health insurance policy, you are restricted to the doctors who are in the company network, you should check if reputable hospitals and doctors are included in the company’s list. If the insurance company you’re inquiring about doesn’t have good healthcare providers in close proximity to your house, it is better to choose a different company. Additionally, make sure there is at least a partial coverage for out-of-network doctors in your policy because sometimes during treatment, hospitals might call for a specialist whose services are not covered by your company.
No-Claim Bonus A no-claim bonus is a health insurance benefit that carries over a percentage or the whole sum of the insured amount to the next year’s policy if no insurance claim has been made in the last year. There are policies that offer a carry-over of five percent to those that offer to carry over 100 percent of the basic sum insured. Choosing a policy with a high no-claim bonus offer will help you cover any unexpected medical expenses and also account for the inflation in medical care expenses.
Consulting a reliable insurance broker is the best step you can take while buying health insurance. They can help you choose the right policy and can help you make your claim when there is an emergency. Ken Maynard Insurance Brokers has been providing insurance services for over 50 years. Our services include auto insurance, commercial insurance, life insurance, disability insurance and more. Read our blog for tips on buying life insurance.
Contact us today for a consultation on health insurance.