Individual Health Insurance
Individual health insurance is the type of coverage that is available to you and your family when other types of group coverage are not. Most group policies are sponsored by your employer, but if you are self-employed, working for a small company that does not have a group insurance plan available or have recently become unemployed and your COBRA benefits are about to expire, an individual health insurance policy may be the right choice for you.
The Right Plan at the Right PriceThere are many companies out there that offer a variety of insurance coverage types and options. The key is in determining which of those companies has the type of policy that will customize your needs into a plan that fits your lifestyle. Some of the things to consider when selecting a medical insurance plan that is right for you are: deductible amounts, monthly premiums, coverage limits, and eligibility.
Deductible Amounts
A deductible is the amount you are required to pay toward your yearly medical expenses before your insurance coverage kicks in. This amount is determined by the plan you select and can range anywhere between $100 and multiple thousands of dollars. However, there are some plans that do not require any deductible at all. You just need to choose what the right combination is for you. Some people prefer a higher deductible to save on their monthly premiums.
Premiums
Premiums are generally paid on a monthly basis, but for some they can be set up quarterly or even biannually. This is the amount that you pay for your coverage on a regular basis to maintain your health care plan. Premiums can be affected by the number of people on your policy, the amount of your deductible, coverage types and limits.
Coverage Limits
Every healthcare insurance plans comes with limitations: procedure, location, yearly out-of-pocket maximums, and lifetime maximum coverage amounts.
Procedure Limits
Most companies will have limitations on experimental or non-approved medical procedures. Some of these may be restricted entirely, while others are allowed in limited amounts. These limits may also include restrictions on things like chiropractic visits or fertility treatments. If these are things that you require, make sure you understand your carrier’s coverage plan.
Location Limits
Some medical facilities are specialized and only accept certain types of coverage or insurance carriers. It is important to find out if your doctor and his or her office and hospital are covered under your health insurance plan.
Out-of-Pocket Maximums
An out-of-pocket maximum is the limit your insurance provider places on the amount required of you each year. Once you have reached your yearly maximum, an insurance carrier will typically pick up the rest of the tab through the remainder of the year.
Lifetime Maximums
Some insurance providers have maximum coverage amounts in place. A lifetime maximum is the total amount over your lifetime that an insurance company is willing to pay. Most lifetime maximums are set at several million dollars, generally more than the typical person will ever spend. However, it is important to be aware whether or not your selected company has a lifetime maximum and how much it is, as the bills for a serious illness or injury can often be greater than what you expect.
Eligibility
Most insurance plans will cover preventative healthcare procedures or check-ups (i.e. flu shots, yearly exams, wellness checks, etc…). However, unlike a group health care plan, individual health insurance does not require that everyone be eligible. It is important to understand the overall health of you and your family before selecting a program. Pre-existing conditions like cancer or fertility issues may not be insurable with this type of plan. Weight/height considerations and family medical history can also be important factors in determining eligibility as well. |
