Health Insurance Articles
Planning Your Health Insurance Coverage For A Major Illness
2010-07-17
When it comes to health care, there's a constant question in the back of all of our minds: what happens if I get sick or seriously injured? With all the different choices in health insurance coverage, understanding the available benefits can be difficult and frustrating. Even with health insurance quotes and advice from financial planners, navigating an ailment that surpasses normal health care can be confusing. Luckily, there are some tips that will make planning a little easier.
The first recommendation is to look into Health Savings Accounts (HSA). The funds in these accounts are designated specifically to pay for expenses that surpass what your insurance covers, such as co-payments, deductibles, and other out-of-pocket costs. These accounts allow you to save money (which is non-taxable) for times when a major illness or injury may strike. It's hard to plan for the unexpected, but a health savings account will ease your mind and make planning for added expenses easier to handle.
The second tip is to know your medical insurance policy and the costs that are associated with it. Before signing up for a plan, make sure to get a few health insurance quotes so you're prepared to make the monthly premiums. You should also know what your deductible is and be financially prepared to meet this. Your medical benefits will not apply until this deductible has been satisfied, so be sure to plan on having cash set aside (either in a Health Savings Account or some other place) for that amount. When selecting your policy, be sure to look carefully at the premium amount as compared to the amount of the deductible. It can be tempting to pay a lower monthly premium instead of opting for a low annual deductible. While this solution seems to make the most financial sense, just be aware that the higher the deductible, the higher your unexpected costs will be when the bills start coming in. You can plan for a high premium, but you can't always predict when statements will come if your deductible is high.
The third suggestion is to look into additional health insurance coverage within your policy. Some companies offer additional benefits that surpass what is supplied normally. For example, insurers will often exclude coverage for durable medical equipment unless a patient has a special rider that provides for these benefits. Depending on the service, these riders can be inexpensive to add. Contact your insurance provider to see if riders are available.
The bottom line in planning for major illnesses and injuries is this: know your benefits and the cost associated with them. It will save you money and give you peace of mind in the end.
