Categorized | Fitness and Health

Common Mistakes When Buying Health Insurance

Posted on 31 January 2012

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When people are buying independent health insurance plans, especially if it is their first time to do so, there are many buying mistakes that an individual can make. The reasons that people sometimes make mistakes are not being able to understand the health insurance industry and the terms they use.

Here are some of the most common buying mistakes people make when purchasing health insurance.

Figuring the cost over the coverage–a common mistake that many people make is considering the total cost of the health insurance instead of the health care coverage. Many health insurance agents put together a health care package and offer a health insurance policy to you at a price that fits into your budget when you compare private health insurance. You are happy to be able to get health insurance that you can afford that you do not check out just what coverage you are getting. There could be flaws in the policy and you end up with a plan that does not cover what you need. Usually the better the coverage the higher the premium. Before you sign up for a health insurance policy look at the terms and conditions because they will tell you everything you need to know about what the plan is going to cover such as the diseases, body parts, and if there is waiting period for pre-existing conditions.

Not comparing the coverage, deductible, compensation, and premium against the claim–when you are referring to a claim, this is what the insurance company will pay after you pay for the deductible, which is the percentage that you have to pay before the company will pay. The deductible is sometimes a set amount like five hundred dollars or a thousand dollars that you have to pay first before the health insurance kicks in and then even after you pay that amount you may still have to pay a percentage of the medical bill, a percentage of the prescription etc. You want to make sure that the deductible and the compensations, what the company is going to pay you, are reasonably proportionate. Many times you will pay a higher premium for less coverage.

Not taking into consideration all the non-covered things–these can include certain diseases and ailments, parts of the body, and incidences that your health insurance will not cover. Make sure that you look to see what is and what is not covered before you accept the health insurance policy.

Make sure that you read everything in your policy to make sure that you get what you need at a price you can afford.

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