Pros & Cons of Private Health Insurance

Health insurance allows you to pay for your health care expenses over time rather than trying to figure out how to pay for an unexpected illness or injury when it happens. Group health insurance is a type of insurance that is offered through your employer. Another type of insurance is private insurance. This type of insurance is not tied to your employer. When choosing which type to buy, you should weigh the pros and cons of private health insurance.

Premiums

• Premiums for private health insurance are typically much higher than for group insurance. This is partially because the risk pool for private insurance is smaller than for group insurance.

Acceptance

• You can be denied coverage in many states due to health reasons. This can be a disadvantage if you have a health condition or you have pre-existing conditions that you want treated. Health insurance companies are often given some leeway as to whether or not they want to exclude pre-existing health conditions from being covered under the policy for a specific period of time.

Options

• You generally have more options with a private health insurance plan because with a group plan your employer dictates which policies are available. With a private policy, you have the benefit of choosing your own policy. In this regard, you choose which policy is best for you and your family.

Portability

• You can take your health insurance wherever you go. This is a major benefit over group health insurance if you leave your job or you are terminated or move, you don't lose your private health insurance coverage. This also means that you won't be subject to any new pre-existing exclusion periods where an insurance company can exclude pre-existing conditions from your insurance coverage.