Health insurance can be choppy waters to navigate for most of us. It’s also something incredibly importance to middle-class working families. So how does one understand if he is getting the best possible coverage from his current medical insurance? How do I know if I am getting my premium’s worth of coverage? Should I ask my employer for better benefits instead of a raise or should I simply use the raise to pay for better individual insurance? These are few of the tricky questions that we hope to address in this blog.
Importance on Safety
The good news is that most insurance policies have, over the last few years, tweaked their policies to favour investors more. Government regulations have also changed so that new investors do not get duped easily. For example, insurers necessarily need to inform existing customers a good three months in advance of increasing premiums. And of course, all insurance policies now cover life-times. So, insurance companies can no longer afford to off-load existing clients based on their health conditions.
While reviewing your existing health insurance policy, remember that no policy offers you an umbrella. Nothing allows you to have all of it at once. You might have a mental list of ten or so conditions that you want in a policy. Settle for the first policy that meets six or more of those conditions. Otherwise, you will end up being in a situation where it is too late for you to get coverage at affordable premium rates.
Reviewing the Best Policy
While reviewing your policy, have a look at whether the company offers better rates if you take up a policy that covers the whole family. You might even get the benefits of a group insurance policy if your coverage includes your parents, spouse as well as your kids. However, be warned that for older members of the family higher premiums are required. I would recommend getting a good policy for your kids at an early age since premiums are often not very high for those at the peak of their health and almost no risk of hospitalization. The rates for family floater policies are often cheaper by up to 22%.
Take a Look at Your Lifestyle
While you review your insurance policy, a review of your own lifestyle may also be in order. Having a healthy lifestyle where family members don’t smoke or drink excessively puts you in a good position with regard to coverage. However, an unhealthy lifestyle might mean that you would have to hedge your bets and spring for a higher premium which provides a better coverage.
Remember to find out what the room rent capping for the policy is. This is one aspect where I find insurance agents not too prone to offer up an answer. This might lead to large-scale potential losses for you. While renting a bed at a hospital make sure that you do it within the prescribed limit. Otherwise, health insurance companies end up only paying 40% of the total bill even if all other expenses are within your cap. This might lead to a pretty big loss.
These are a few of the steps needed to ensure that the next health insurance premium one buys gets one the best possible deal.