Which Health Plan Is Right for You

With so many different plans to choose from, you might feel overwhelmed at the prospect of having to choose a health and life insurance plan. Just as when you are looking for the best life insurance, you have to ask yourself some possibly uncomfortable questions to guage your risk and priorities. To select the best health insurance policy, ask yourself the following questions before deciding on a coverage plan.

• How much can you afford to pay each month? Your budget will have a profound impact on the kind of health and life insurance plan you choose. You want to purchase the highest-quality coverage you can afford, so you need to have an insurance budget worked out before you begin shopping. Figure out a range of what you could comfortably afford to spend on health insurance premiums.
• How important is it to you to be able to make your own healthcare decisions? Health insurance policies vary considerably on the degree of freedom policyholders have in choosing their doctors and care. On the one end of the spectrum, HMO plans offer very little flexibility in choosing your own doctors, and you will have to see a general care practitioner before you can see a specialist. By contrast, PPO and indemnity plans will usually pay for any doctor the policyholder chooses, but may offer financial incentives for seeing physicians who participate in their network. These kinds of plans also do not require referrals in order to see specialists.
• Do you need prescription drug coverage? Prescription drug coverage will substantially increase the premiums you pay for your health insurance, but it may be worth it if you require expensive medications on a regular basis.
• What additional features do you want on your plan? The more features you add to health and life insurance plans, the more they will cost. With regard to health insurance, examples of additional coverage options are vision insurance and dental insurance. If you can't afford to pay for these services out of pocket, consider adding extra coverage to your health insurance policy.
• How much are you willing to pay out of pocket? Your health and life insurance premiums will be much lower if you're willing to absorb some of the costs of your medical care yourself. This usually means paying a portion of the bill out of pocket in the form of coinsurance, deductibles, or co-pays.
• What kind of deductible can you afford? A health insurance deductible is the amount of money you must pay out of pocket before your health benefits kick in. Fairly low deductibles are those that range from $0-$500, but you will pay higher premiums for deductibles this small. If you increase your deductible to $1,000 or more, your premiums will drop substantially.