We all have heard of the adage, “Health is wealth,” and it is especially true for health insurance. Buying health insurance cannot be only for saving tax, and everyone must give it serious consideration. More than 75% of the financial crises in people’s lives are due to medical emergencies.
Medical problems affect two ways; one is by depleting your savings and second by making you unable to work and earn. It is hard to imagine the pain if you are unable to get the best medical treatment for your loved one. Health insurance is a must, but you must also choose the best one. Here are a few pointers for you to make the best choice.
This is, of course, the first consideration but doesn’t look only at the cost. You must try to find an insurance premium that fits your budget but remember that the cheapest ones may end up costing much more in the long run.
- Understand Insurance Terms
It is always better to clarify your doubts before deciding. If you are unable to understand terms like co-payments, out-of-pocket payments, etc. or are not clear about rules and conditions for a claim, then take the experts’ help. Repenting, later on, is futile. Ask the right questions to get the correct answers.
- Your Health
Take a good look at your health and also look at family history. If you have any long-standing issues or medical conditions which may require ongoing treatment, then you need a plan which supports this. A plan with lower deductibles and co-payments can be a better choice. You may pay higher premiums, but in the long run, it will be beneficial.
- Calculate Carefully
Even people who are good at math find it daunting to understand all the calculations. Different plans have different premiums and deductibles. It is essential to understand the real cost you will pay while buying the insurance and the long-term cost you may have to pay while making a claim.
- Out-of-pocket Cost
These expenses are any part of the medical care, which is not covered by your insurance. You have to pay for them out of your pocket. For any layperson, it could be challenging to understand the terms. Insurance companies also charge co-payments and co-insurance and depending on the plan you choose; you will be paying a certain amount even after having insurance.
- Pay Attention To The Benefits
You must look at the list of benefits before choosing any insurance; otherwise, you may face problems later. How much the insurance will cover and what exactly it will cover are both important. Prescription drug coverage is crucial for people with certain medical conditions. Mental health, substance abuse treatment, etc. are specific conditions, and not every provider or every plan will include them.
Look for flexibility in the insurance plan. If you want to add a family member, then it should be easy. If you want to renew the plan but want some changes, then it should be possible. When the plan is very rigid and has no way to make any changes, it may become more of a burden.
- Waiting Period
Most health insurance plans have a waiting period for pre-existing medical conditions like diabetes and varicose veins. This period can range from 1 to 4 years, depending on the condition and the policy you choose. You must check the waiting period and find one with the minimal waiting time.
Choosing the right health insurance is not only important financially but also for peace of mind. It gives you and your loved ones a sense of security that the best medical care is possible without making you go bankrupt.