Health insurance for individual
It is quite ironical that the increase of disease affliction has been proportional to the development of medical technology. Road, rail, air and marine safety measures have contributed little in reducing the number of accidents. In the face of such adversity, it is not surprising that people are flocking to insurance agents and advisors to plan their health insurance. The coverage offered by these insurance policies secure an individual from potential healthcare hassles.
Importance of Insurance
An acquaintance had once narrated his miserable tale of losing a fortune on his medical bills. And, the sad part was, this person had just fractured his finger. When his parents were alive, they had taken care of his health insurance. Once they were gone, he was so occupied with work that he had never had the time to approach his insurance agent and renew his health insurance. Worse, he had never felt the need for it. He assumed that as long as he stays healthy, there would be no reason for him to land up in a hospital. The whole concept of health insurance had sounded trivial to him. However, he learnt his lesson the hard way when the doctors at the hospital charged him a hefty fee just to fix his broken finger. His finger had healed in no time, but he lost a huge sum of money because he had failed to get a healthcare policy. Like him, there are quite a few people who trivialize the concept of health insurance. They need to understand that health insurance is not for weak and diseased people alone. It offers coverage for unexpected healthcare situations. It takes care of all your medical bills if you ever fall ill or injure yourself in an accident. Buy health insurance not after you realize you need it, but before you actually feel its need. If you think spending on insurance is a wasteful expense, then don?t forget that the expenses that you would incur in a medical situation would be far greater. You never know when a small thing can grow in size and affect you badly. Better safe than sorry!
Individual Insurance
Individual health insurance is typically bought by people who are not covered by an employer-sponsored group health policy. Individuals have faced issues in finding appropriate health insurance policies that will accept them. People who are looking to buy individual health insurance also encounter problems with the policy in terms of affordability and coverage. Individual health insurance is most often regulated by state policies. The subjectivity of a policy and the coverage included in it is mostly determined by the place of residence. Health Insurance for an individual is most often characterized by the process of medical underwriting. This means insurers would evaluate your health status, medical history, your age and gender, and a few other characteristics before accepting your application. In certain states, insurers can deny you coverage if you suffer from recurring medical problems, especially health problems like diabetes. However, medical underwriting is not a common practice and is illegal in certain states. Individuals are entitled to health coverage regardless of their medical status in these states.
Pricing
Health insurance pricing is an aspect that plays a huge role in deciding your premiums. Typically, the premiums that people pay are directly related to their expected health problems. What this means is greater your age, higher is your premium. Premiums are also decided based on the health condition of a person. A healthier person would have to pay lesser premiums than people with recurring health problems. Before you approach the insurer, gather some information about the possible premiums that you might have to pay. Moreover, there are variations in the insurance premiums based on the insurer who offers you the policy. This is another important aspect you need to check before approaching the insurance company. Try to get quotes from major low cost health insurance companies before purchasing insurance.
Deductible
One important rule you must not forget is, higher the deductible, lower is the premium you pay. Deductible is the amount you pay to make up a part of the claim to cover your medical expenses. The remnant of the claim is paid by the insurance company. For example, you have incurred $5000 by way of medical expenses and the deductible you have agreed to pay is $2000. So, you pay $2000 and the company pays the remaining $3000 to make up the claim. This is an important factor you must consider before you buy your insurance. When you raise the deductible, you would have to pay lesser premiums. However, remember that you would have to pay more when you make a medical claim.
Health Savings Account
A health savings account is also an additional option for people who use their insurance not more than twice a year. The health savings account is combined with insurance policies with high deductibles but low premiums. For your minor health needs, you can use this account, while turning to the high-deductible policy for major needs.
Hiring an Insurance Agent
When you are shopping for insurance, choose an insurance agent wisely. The agent must be one who is trustworthy and easy to work with. He is the person representing you in case of a claim. Agents are trained professionals and they know their job well. So, they would know what to do in case of a problem. He can also help you pick the right policies, keep you updated about any changes in premiums, prices or policy features and also helps you decide on policy opportunities. Ensure that you pick an able, ethical agent who will guide you and fight for you if there is any claims dispute.
Although individual health insurance sounds like an easy concept, you need to put in a lot of thought before you buy a policy. There are a lot of rules that govern individual health policies in certain states. So, find out if the state you are living in entitles you to buy health coverage with no terms and conditions governing a policy acceptance. Insurance companies do not provide complete clarity in terms of insurance policies and their features. It is your responsibility to find out what is right for you. Evaluate the options you have and decide wisely.
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