Choosing an insurance plan for yourself can be tricky. There are so many options to choose from that it can give you a migraine just trying to sort all of them out. Fortunately, some people who have gone through this hurdle have decided to share what they have learned so that others will not have a difficult time figuring out what kind of insurance plan to get.
So before you say “yes” to that insurance broker trying to seal the deal with a final expense insurance selling point, take a look at these few tips.
Figure out your health status
Before you start shopping for an insurance policy, it is important that you first know the status of your health. The basic principle of an insurance policy is that it will help cover your medical fees in an event that you get hospitalized.
If you are basically healthy and you work hard to stay that way, chances are you will not visit the hospital on a regular basis. Also, you are not likely to use up a lot of medicines. If that is the case, then choose an insurance plan that will require you to pay higher bills from your own pocket because they have lower premiums.
If it is the other way around, choose monthly premiums that are higher but would cover more of your hospital bills so that you will not be burdened too much with settling your medical expenses on your own.
Choose among the three: Indemnity, HMO or PPO
To minimize your confusion, you should seek help from a professional insurance broker. For now, here are the basic definitions of each option.
- Indemnity – This requires the insurance company to help settle a portion of your medical expenses while you pay the rest. The great thing about indemnity is that you can choose any physician you want without prior approvals. The disadvantage is that it is hard to get. It can also be more costly compared to the other two options.
- HMO – Health maintenance organizations (HMOs) are packaged health plans with a fixed price. The great thing about HMOs is that your own payments will be lower and easier to predict so you will be able to save more with this plan. The only downside is that if you have a medical concern not covered by your plan, you will not be entertained unless it is an emergency. Also, if you require a different specialist to look into your medical concern, you will need a referral from your primary physician.
- PPO – Preferred provider organizations (PPOs) are almost the same as HMOs, but unlike the latter, you can seek help from other specialists outside your primary network. This plan enables you to seek help from other specialists that HMOs cannot provide. But with PPOs, it is harder to gauge how much you will have to pay medical expenses from your own pocket.
Consult your employer
Finally, you should consult your employer and see what kinds of insurance plans they have that can help you minimize your costs if something untoward happens to you. It is mandatory for any company to provide health care plans, so feel free to consult your HR or employer on the types of insurance policies they have for their employees.