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Buyer's Guide to Health Insurance

The process of buying health insurance can be confusing and stressful. After all, with so many policy types available, each with its own set of specifications, it can be hard to know which is the right choice for you. Moreover, once you've chosen an option, you may or may not be approved for the policy, which puts you right back at square one. Utilize a buyer's guide to purchasing health insurance to simplify the process.

  1. Check Approval Guidelines

    • Each insurance company has its own set of approval guidelines, based on its policies and procedures. For example, some companies won't cover certain pre-existing conditions, while others will only cover individuals under a certain weight. Before you even begin the lengthy process of applying and submitting initial payments, ask for a copy of the company's guidelines, so you can make sure you fit within them.

    Co-Pay Versus Deductible

    • This is a major deciding factor for many people, because one or the other means money out of your pocket. The deductible is the amount that you must pay on your medical care before insurance kicks in. The co-pay is the amount that you pay each time you have to visit the doctor or medical care facility. Generally, it is best to find a policy that is middle ground for both. For example, a $20 to $30 co-pay is fairly standard, as of 2010, but a $50 or higher co-pay range may be more than you can afford to go to the doctor. Conversely, sometimes, you can get a lower co-pay if you are willing to have a higher deductible. The ideal situation is to get both an affordable co-pay and deductible.

    Coninsurance Amounts

    • Co-insurance is the amount of the medical bill for which you are responsible once the insurance company has ponied up its portion. A good policy will have a co-insurance percentage of 80 percent of better. An average policy is between 60 and 70 percent and anything less than 70 percent might not be worth the money if you have to visit the doctor often.

    What's Covered

    • Not every policy covers everything; for example, some insurance policies cover primary doctor visits whenever you feel the need to go to the doctor; others only allow you to see your primary once a year. Some policies will also cover vision and dental care, while others require a different policy for this. Before you purchase insurance, you need to find out what exactly is covered, so you can be sure you are getting the right place for you.

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