Wednesday, November 9, 2011

Health Insurance Options That Don't Break the Bank by Rickey Pearce

In the current economy, many families are in a state of crisis when it comes to their health insurance. From lay-offs to business closing completely, many people now find themselves without a job or any kind of insurance for their family. With the high price of COBRA, those who have experienced downsizing don't even have that as an option.

Most recently, the unemployed or uninsured need to find cheap health insurance for themselves or family and wondering what are the options. Sometimes, reading a health insurance policy can leave you more confused than before. Readers are often left wondering exactly what their coverage is and under what circumstances. With every penny counting, it is important to make an informed decision.

Getting Informed

Finding cheap health insurance is not just about finding one that is affordable. It is also about one that covers the things most important to your life and the circumstances surrounding your needs. One of the most valuable things you can do before choosing an insurance is get informed. Understanding some of the terms will go a long way in getting proper coverage:

- Family and Individual Coverage

Individual or family coverage is obtained by the individual and separate from any company or group. One of the most important things to understand about individual health insurance plans is that they are typically more difficult to obtain. Since it is for an individual or family, the medical history of each person will be looked at much more carefully than under a group plan, where the risk is spread over all paying members.

- Short Term Health Insurance

For those who are in-between jobs, short term insurance plans may be a good option. Coverage ranges from one to six months and can help if there is a medical crisis in an already difficult time. They are limited however. They will not cover a pre-existing condition or preventative care.

- Student Health Insurance

Another group usually in need of cheap health insurance are students. Increasingly, schools are making having health insurance one of the requirements of enrollment. To make sure that medical insurance continues uninterrupted, families should be shopping for cheap health insurance plans long before school enrollment.

- Defined Benefit

For those who have been turned down by major insurance companies for preexisting conditions, a defined benefit may be a cheap health insurance option. These plans provide defined coverage and do not cover catastrophic coverage. They are easy to understand and provide first dollar coverage. Although they may not seem to be cheap, or exceptionally affordable, they are a much better alternative then managing the cost of a serious illness alone.

Good Questions to Ask About Health Insurance Obtaining cheap health insurance can be a difficult and confusing process, but asking good questions can help you get the coverage you need:

- Are there ways for individuals to gain group insurance? A health insurance agent can help an individual discover possible group plans through credit unions or trade associations.

- What is Risk? Knowing what insurance looks at to calculate their risk, and your cost, can lower your risk and cost.

- How do I know what is covered and what is not? Knowing exactly what the plan covers as well as it's limits will help you to choose the one that best fits you expectations. You can trust an agent to help you understand the coverage terms as well as the limits.

Finding cheap health insurance can be a difficult, but important task. A financial downturn can cause many to consider going without coverage for a time, but that decision can end up a very costly one both financially and for one's health. A local agent can help you find a plan that not only meets your needs, but is affordable as well.