The Best Way to Buy Individual Health Insurance

There are several ways to buy individual health insurance. Unfortunately, the task can become quite an undertaking. You will soon realize each state has its own rules, not all health care companies are licensed in each state, and sometimes policy options are limited. According to "Buying Your Own Health Insurance," by Kimberly Lankford, you have to start somewhere, so follow these steps.

Insurance Quoting Websites

• This is perhaps the easiest, least time-consuming and most convenient way to do it yourself, and you will get your quote quickly. There are many good websites that provide free, confidential quotations to individuals. You will not only receive a quote, but also get an overview of the benefits. Most often you will receive more than one quote from the same company, so be aware of the differences. It could be deductibles, prescription drug plans or something such as maternity benefits. RxHealthQuotes.com at http://www.rxhealthquotes.com is a good source for quotations.

State Insurance Website

• Another avenue to explore is your state's insurance department website. The website will give you a list of insurance companies and brokers who are licensed to sell health insurance in your state.

  If you wish to contact a licensed agent from the website list, you can check any complaints filed against him as well as what companies he is licensed to represent. The agent will meet with you and present policies that he is authorized to sell. It is important to understand that different agents will present different policies for the companies they represent; therefore it is up to the buyer to compare prices and policies for the best fit.

  In some instances, you may decide to contact the insurance company directly. Many insurance companies will allow the consumer to apply for coverage directly through their customer service department. You may want to do your homework first before traveling this avenue. It is very important to know exactly what kind of policy you want, what kind of deductible you are prepared to pay, and what kind of benefits you desire.

Begin a Small Group

• It is a well known fact that insurance rates for group policies are much less expensive than individual policies. If, by chance, you and the neighbor have been shoveling driveways part-time during the winter months you may want to consider forming a small business. In some states, two people constitute a small group, making this business eligible for small group health coverage, which could be considerably less expensive than individual coverage.

Know Your Needs

• The best way to buy individual health insurance coverage is different for each person. The most important aspect before buying is the preparation. Armed with a list of wants and needs, prioritize your list. Also remember, cheaper is not always better. A higher deductible usually means a lower monthly premium. However, this is more out of pocket money before your insurance coverage begins. Familiarize yourself with insurance terms such as HMO, PPO, HSA. These terms can be found on websites such as www.rxhealthquotes.com. Check insurance plans to make sure your physicians and hospitals are covered. An informed consumer will be able to make a wise decision.