Choosing the right individual health insurance plan is overwhelming on its own, but deciding on a low-cost option can be even tougher. Before you begin exploring the world of low-cost coverage, read through the advice here; it might just save you a little money and a lot of hassle.
Understanding Low Cost Individual Health Insurance Deductibles
You’ll hear the word deductible quite often when you’re searching for new insurance, so it’s important to understand what it means and how it works within the framework of a low-cost plan.
A deductible is the amount of money you’re responsible for paying before your insurance takes over. For instance, if your plan has a $1,200 deductible and you need $5,200 of medical work within a year, you’ll be required to pay the first $1200, and the insurance company will pay the remaining $4000.
In order to keep the monthly premiums affordable, low-cost plans often feature higher deductibles than you’d find on traditional options. Whether you choose a reduced premium or reduced deductible is entirely based on your financial situation and medical needs, but make sure you know the exact dollar amount of both before deciding on your coverage.
Alternative Low Cost Individual Health Insurance Plans
Of course, traditional individual plans aren’t the only options available. If money is tight and you need coverage fast, these options might be worth exploring.
- Limited Coverage Plans: Also known as mini-medical or mini-med insurance, limited coverage plans provide a low-cost alternative for people who need very basic insurance. You’ll be covered for appointments, prescriptions and some medical supplies but not for emergencies. These plans do, however, offer coverage for limited hospital and surgical needs.
- Short-Term Plans: If you need insurance for only a minimal time, short-term medical insurance plans are an affordable option. You can receive coverage for up to 36 months, and then you’ll need to re-enroll or find a new option. This is ideal for people who have a gap in their insurance coverage.
When Low Cost Individual Medical Insurance Isn’t Right
Regardless of your financial situation, make sure that the low-cost plan provides coverage for everything you need. Not all plans are alike, and you may find that paying a slightly higher premium will give you access to better benefits and a lower deductible. Talk to your insurance agent to understand the full breadth of possibilities.
