While some people are predisposed to illness and others like to protect themselves from the unknown, having health insurance that you can fall back on in both cases is absolutely important. The biggest challenge that many people face as it relates to health insurance is the cost.
Sure, most businesses offer insurance plans for employees and family members in some cases. However, you may feel the need to get personal insurance of your own, or you may not have a choice because your employer doesn’t provide insurance. If you’re self-employed, your health insurance is up to you.
But how do you choose which plan might be best for you?
The first thing to determine is what your pocket can afford. The two main things to consider when making an effort to identify affordable insurance are:
- What you can afford for monthly premiums
- If you can afford high deductibles at the beginning of each year
Determining if Higher Monthly Premiums Will Work For You
Plans that offer higher monthly premiums usually cater to people who have consistent financial responsibility on a monthly basis. For example, if you’re married with kids and you’ve been employed in the same job for a number of years, you could do well with the type of plan that offers higher monthly premiums.
In such a case, it could mean that you’ll have the kind of monthly income that could support it.
The greatest benefit of choosing a plan with higher monthly premiums is that you can avoid being subject to high deductibles and you wouldn’t encounter the challenge of finding a lump sum payment in the event of illness.
Annual Deductibles Could be Your Answer
On the other hand, you may feel more comfortable with an insurance plan that has higher deductibles and lower monthly premiums. Deductibles refer to the amounts that are required as upfront payment by the insurance company prior to them paying out claims.
This payment option is ideal for people who may not have the monthly income to support a plan with higher monthly premiums. Plus, if you rarely visit a doctor, then your health insurance can protect you from financial catastrophe in the event of sickness while saving you money the rest of the time. Keeping an emergency fund to pay expenses until you meet your deductible is wise.
Typically, having a plan with lower deductibles means you’re more flexible throughout the course of the year to make doctors visits, take routine tests, and even deal with additional expenses that come with surgeries and lab tests.
Two Other Things to Note
- Get good coverage. Whichever plan you choose, it is absolutely important that you have good coverage. In the event of a medical emergency or other medical need, a plan offering good coverage means that the insurance company will absorb much of your medical expenses.
- Opt for coinsurance. Tied in with good coverage is a coinsurance plan, which usually sees an insurance company paying 80% of the medical fees and you paying the remaining 20%. This kind of arrangement can be available with plans that have either higher deductibles or higher monthly premiums. It depends on what the insurance company can provide.
Using Online Resources in Your Search
Finding an affordable health insurance plan is easy, especially if you choose the option of doing online comparisons. The Internet provides many websites that you can visit to compare the services of different insurance companies.
Once you’re able to see them side-by-side, you’ll be able to determine which plan you can afford and which one would more suit your earning pattern and budget.
Health insurance is never something you should count yourself out of. It is absolutely essential and definitely affordable if you spend enough time looking at the options and choosing one that is right for your pocket.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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