According to most experts, you have to complete your emergency fund first before trying to avail an insurance plan for you. This is to ensure that you are already financially stable before you start investing and availing your insurance plan.
When you are sure that you are ready to avail an insurance plan, don’t get overwhelmed with the choices that you find when you start searching. This article will help you determine which one is the right one for you and which factors to look at.
Insurance plans are usually categorized by how you and your insurance company will split the pay when you use it. It is usually presented as metals, (Bronze, Silver, Gold, Platinum) or sometimes level (Levels 1-4) depending on your insurance provider. The tier does not have anything to do with the level of care, but only with the split that you will pay vs. the percentage that the company will pay.
You know you are paying your premium, but there are still costs beyond that that you have to know about. These are deductible, or the amount that you have to spend before your insurance pays anything. Co-payment and coinsurance, this is the amount you pay after you reach your max amount of coverage. Out of pocket maximum, this is the maximum amount you have to pay before your insurance company pays 100%.
There are different types of plans, it may be disguised as different names based on the company you are talking to, but these are the types.
Exclusive Provider Organization (EPO): This cannot be used during an emergency and is only for doctors, specialists, and hospitals in the plan’s network.
Health Maintenance Organization (HMO): Limited to the doctors that are under contract with the HMO company.
Point of Service (POS): You pay less when your doctor refers you to a specialist.
Preferred Provider Organization (PPO): This is where you pay less when you use the services in the plan providers network of doctors and hospitals.