Health insurance, in this modern world of cancer, heart disease, AIDS, diabetes, asthma, ageing and other diseases and afflictions, it is essential to have some sort of health insurance.
There are many levels of health insurance coverage available. Like most things in life, you get what you pay for Which means good coverage can be very expensive.
The two most common terms in insurance are premium. The amount paid on a scheduled basis for your coverage. And deductible, which is your out-of-pocket expense before the insurance pays your provider.
For instance, you might pay $300 premium per month for family coverage. Your deductible might be $250 per person. This means if you broke your ankle and went to the hospital emergency room, you would pay the first $250 of the bill.
Two other terms that are part of health insurance are max-out-of-pocket and co-insurance. Max-out-of-pocket limit is the maximum amount of money that you will spend on your health insurance. Be careful some policies have a limit as to the amount of insurance you can use in one year. Co-insurance is the percentage of cost you pay between the deductible and the max-out-of-pocket.
Think of health insurance in these three parts, and your questions will be answered. First, you pay all health care costs until you reach your deductible. Second, you pay a percentage of your health care costs until you reach your max-out-of-pocket. Third, you pay nothing for health care (unless your plan says otherwise).
You can purchase very basic catastrophic coverage, which would carry a very high deductible and the premium would be less than comprehensive coverage which would have a higher premium and lower deductible.
It pays to invest the time to investigate various insurance options, taking into consideration your age, your general health and the health of your family members.
Employers can offer group health insurance. It is most likely the least expensive option for you, and usually the premium is deducted from your paycheck.
Health insurance is a calculated risk; can you afford the premiums? Or, are you willing to risk paying less out of pocket for medical expenses in a year than the premiums would cost? Consider carefully.
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