Do you really know what your insurance can do for you or how to use it for your benefit? A major drawback of insurance is that most people have no idea what they bought, let alone whom they bought their insurance from--or how to use it. Consumers need to understand that not every insurance company or plan is the same. In addition, they need to learn how to use their insurance properly. Health insurance isn't always about protecting the small stuff; rather, it's about protecting yourself from the major catastrophes.
Often, if you ask an individual who their insurance company is, they have no idea. Most simply know either they have insurance or they don't. Not until they actually need it do they bother to find out who the carrier is. If you ask them, they'll say things like "Cross Shield" or "Mid-West Health". If you don't know what you bought, how are you supposed to make sure it's going to do what you need it to do when you need it?
Know What You're Buying
Purchasing health insurance is a serious matter that should be taken seriously. If you are simply buying a policy online based on price or if you're working with a broker over the phone, you may discover later, when you file a claim that your policy doesn't cover what you thought it would.
How many times would you buy a house over the phone without seeing the house? Better yet, would you buy a car over the internet without talking to the owner/ dealer first? Purchasing health insurance can be an equally important financial transaction. Meeting with an experienced agent who will explain the plan to you in detail and allow you to ask detailed questions will probably take no more the 15-30 minutes, depending on how many questions you may have. In addition, you have the opportunity to build rapport with an agent you can call on in the future if you have questions or needs.
Unfortunately, many have become spoiled by the plans they have had in the past while working for a major corporation. Not all insurance plans are the same. In fact, there may be a tremendous difference between one plan and another. Many who have had coverage through a large group plan while working for a major corporation are lulled into the false belief that all they need do is walk into a doctor's office or the hospital and all will be taken care of for them.
When purchasing a health policy as an individual or small business owner, you no longer have the luxury of simply presenting your group member card and paying a small co-payment or deductible. Instead, you must know what your policy will and will not cover. Moreover, you must be fully aware of these things upfront-during the purchasing process in order to be able to make an informed decision about the coverage you are purchasing.
How Much Risk are You Willing to Assume?
When you purchase insurance on your own, either through an individual policy or a group policy through your industry association or another organization, you will have to make a number of choices regarding deductibles, coverage, and other particulars of the policy. In other words, you get to determine how much of the financial risk you are willing to assume. The more risk you assume by having a larger deductible or less coverage, the less expensive the monthly premiums. Consequently, it is imperative you have a full understanding of what you are buying and what risks you are assuming. In order to make a well informed decision, you need to sit face to face with a competent agent who can fully explain what is and isn't covered.
Insurance has historically been designed to prevent catastrophic financial ruin from an unexpected major disease or accident. Over the decades, as people became used to the full coverage their companies provided and often paid for completely, insurance ceased to be used for catastrophic coverage. Rather, people began to go to the doctor for every little ache and pain, whether it warranted a doctor visit or not-after all, it was "free." Much of the exorbitant costs in both insurance and medical care has arisen from this overuse of insurance.
As an individual consumer purchasing an individual or group policy, you will have to consider carefully how and why you intend to use your insurance. If you are willing to absorb the cost of the more minor medical costs, you can cut your health insurance premiums considerably by purchasing a policy with a higher deductible and/or co-payment. Those who are relatively young and healthy may want to minimize their coverage, while those with active children may want more coverage in anticipation of normal childhood accidents.
By working with a knowledgeable agent, seriously considering the amount of risk you are willing to assume and limiting your doctor visits to those times when it is really necessary, you can control the cost of your health insurance. It need not be out of reach. Nevertheless, at the same time, it is your responsibility to know what your policy does and does not cover.
By : Bobby Kirby
Often, if you ask an individual who their insurance company is, they have no idea. Most simply know either they have insurance or they don't. Not until they actually need it do they bother to find out who the carrier is. If you ask them, they'll say things like "Cross Shield" or "Mid-West Health". If you don't know what you bought, how are you supposed to make sure it's going to do what you need it to do when you need it?
Know What You're Buying
Purchasing health insurance is a serious matter that should be taken seriously. If you are simply buying a policy online based on price or if you're working with a broker over the phone, you may discover later, when you file a claim that your policy doesn't cover what you thought it would.
How many times would you buy a house over the phone without seeing the house? Better yet, would you buy a car over the internet without talking to the owner/ dealer first? Purchasing health insurance can be an equally important financial transaction. Meeting with an experienced agent who will explain the plan to you in detail and allow you to ask detailed questions will probably take no more the 15-30 minutes, depending on how many questions you may have. In addition, you have the opportunity to build rapport with an agent you can call on in the future if you have questions or needs.
Unfortunately, many have become spoiled by the plans they have had in the past while working for a major corporation. Not all insurance plans are the same. In fact, there may be a tremendous difference between one plan and another. Many who have had coverage through a large group plan while working for a major corporation are lulled into the false belief that all they need do is walk into a doctor's office or the hospital and all will be taken care of for them.
When purchasing a health policy as an individual or small business owner, you no longer have the luxury of simply presenting your group member card and paying a small co-payment or deductible. Instead, you must know what your policy will and will not cover. Moreover, you must be fully aware of these things upfront-during the purchasing process in order to be able to make an informed decision about the coverage you are purchasing.
How Much Risk are You Willing to Assume?
When you purchase insurance on your own, either through an individual policy or a group policy through your industry association or another organization, you will have to make a number of choices regarding deductibles, coverage, and other particulars of the policy. In other words, you get to determine how much of the financial risk you are willing to assume. The more risk you assume by having a larger deductible or less coverage, the less expensive the monthly premiums. Consequently, it is imperative you have a full understanding of what you are buying and what risks you are assuming. In order to make a well informed decision, you need to sit face to face with a competent agent who can fully explain what is and isn't covered.
Insurance has historically been designed to prevent catastrophic financial ruin from an unexpected major disease or accident. Over the decades, as people became used to the full coverage their companies provided and often paid for completely, insurance ceased to be used for catastrophic coverage. Rather, people began to go to the doctor for every little ache and pain, whether it warranted a doctor visit or not-after all, it was "free." Much of the exorbitant costs in both insurance and medical care has arisen from this overuse of insurance.
As an individual consumer purchasing an individual or group policy, you will have to consider carefully how and why you intend to use your insurance. If you are willing to absorb the cost of the more minor medical costs, you can cut your health insurance premiums considerably by purchasing a policy with a higher deductible and/or co-payment. Those who are relatively young and healthy may want to minimize their coverage, while those with active children may want more coverage in anticipation of normal childhood accidents.
By working with a knowledgeable agent, seriously considering the amount of risk you are willing to assume and limiting your doctor visits to those times when it is really necessary, you can control the cost of your health insurance. It need not be out of reach. Nevertheless, at the same time, it is your responsibility to know what your policy does and does not cover.
By : Bobby Kirby
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