The internet has made it easier to compare different health
insurance policies and shortlist health insurance plans. With the right health
insurance policy, one can make substantial savings if a family member gets
sick. Although there is no golden rule to choose the right individual plan,
yet, some common tips help in the decision making process. Five keys to
choosing the right individual insurance plan have been listed below:
• Determine your need
and your affordability:
Even before you start your online search for insurance
plans, one needs to be sure about the details of the plan. You need to make
sure that the benefits offered by the plan covers what you need for yourself and
your family. However, the perfect plan will also come at a considerable cost.
As an informed customer, you need to do a proper cost benefit analysis to make
sure your trade-off between price and benefit is in the appropriate proportion.
If we take into account, frequent trips to the doctors, medications and dental
coverage - such scenarios eliminate unsuitable plans and makes the comparison
process much easier.
• Don't overbuy:
The scenario is similar to buying a luxury car where
the monthly EMI equals your home loan payment. There is no point in purchasing
a health insurance policy with benefits which are unlikely to be used at a high
and unviable cost. For relatively young and healthy individuals, a policy with
a high deductible is more suitable. Deductibles are the amount paid by insurers
before certain benefits kick in. A plan with a decent deductible will cost
considerably less per month and could save money in the long run.
• Walk through several
plans:
It is always advisable to go through several plans. In
the process, benefits associated with different health insurance plans can be
reviewed and analyzed for better decision making. At first glance, some plans
may look appealing. Later, the same plan turns out to be a costly affair due to
cost sharing arrangement. The burden of medical cost in the future will be a
big headache. Hence, going through and analyzing several plans is the best way
forward.
• Co-insurance and
co-payments:
Several health insurance plans require the holder to
contribute to the coverage payments. The contribution is called co-insurance
and is the portion the customer has to pay after deductible. A co-pay is a flat
fee one has to pay while paying a visit to a doctor or specialist. While
choosing a personal health insurance policy, consumers should look into
co-insurance and co-payments factors.
• Reputation matters:
After identifying the price and need of the plan,
reputation of the company should also be in the reckoning. Ideally, a company
with a long haul in the market should be trusted and relied upon. There are
many ways to assess the standing of insurance companies and their health
insurance policies.
