HEALTH INSURANCE:
VITAL SECURITY FOR A HEALTHY LIFE
Staying healthy takes hard work. Eating right, exercising, abstaining from harmful substances and seeing your doctor regularly for checkups all help guarantee overall health.
But there's one thing you can never anticipate: medical problems. You never know when a crisis such as an illness, accident, or situation requiring special treatment might crop up, costing you hundreds or even thousands of dollars.
Why You Need It
Where would you turn if, God forbid, one of these things happened to you? Do you have the finances to sustain long-term treatment, if necessary?
Most of us don't. And that's why we need health insurance.
Health and medical insurance provides you the finances to have necessary medical tests, get emergency treatment, see specialists or pursue other courses of action related to your health and well being. But that's not all; it also provides you with peace of mind to help you weather the storm when you're stressed out and not thinking clearly.
Understanding the Basics
If you've never bought health insurance-or if you have questions about the subject in general-we're here to help! We know how confusing shopping for health insurance can be, so we'd like to provide you with some information to help you understand the subject better.
Let's start with a few basic definitions you should know:
- Premium : the total amount of your monthly or yearly insurance payments
- Deductible : the amount you must pay before your health insurance plan steps in and begins paying your health care expenses
- Co-payment : the portion of your medical bills for which you're personally responsible when you receive care
- Co-insurance : usually a percentage of the total bill, this is an additional amount you must pay along with your deductible. It is not required on all health insurance plans.
- Out-of-Pocket Limit : a certain dollar amount, predetermined by your insurance company, at which you are no longer responsible for your medical bills. At this point, your insurer pays the rest of your medical costs for the year.
- Lifetime Maximum : the dollar amount of medical coverage your plan provides throughout your lifetime.
- Exclusions : the services your health plan doesn't cover, such as cosmetic dentistry or mental health care
- Limitations : the services your plan covers which have time or dollar amount limitations, like length of hospital stay.
Considering the Options
Now, what should you look for in a health insurance plan?
The options are numerous. Here's a sample of what you can choose from:
Fee-for-Service Plans: Often called traditional or indemnity health insurance. You choose and visit a doctor, who then submits a claim to your insurance company for reimbursement for each service provided. (This often occurs at 80 percent of reasonable and customary charges.) You are responsible for the remaining charges.
Managed-Care Plans: Include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point-of-Service plans (POS). These plans provide you with more comprehensive health services and medical treatments. Your coverage is paid in advance, so you do not need to pay for each service individually. Out-of-pocket expenses are typically low, and there are generally no deductibles or copayments; however, you must use health care providers within the provider's network.
If you're unsure which type of coverage you should buy, ask a licensed health insurance agent in your area. He or she can fill you in on the details and help you determine the best kind of policy for your needs.
Shopping Wisely
Shopping for health insurance can be a breeze- if you know how to go about it. Try these simple tips for making things easy:
• Comparison shop to get the most coverage for the least money.
• Fill out your applications accurately and completely.
• Make sure you understand what you are buying. Ask your agent or insurance company for clarification on anything you don't understand.
• Verify all company/agent licenses to ensure their certification to sell insurance.
• Never permit high-pressure tactics. Report any abuse to your state's Division of Insurance.
• Do not be misled by advertising. You are the only one who can determine if a particular policy is right for you.
Staying Healthy
Buying health insurance is a definite step in the right direction if you want to live healthy. So eat right, walk that extra mile and shop for health insurance today-while preparing yourself financially and emotionally for tomorrow!