Catastrophic Health Insurance Costs
The reason you have any kind of insurance -home, auto, health- is to protect yourself in case of an emergency. Right? You have home owners insurance so you can replace your home in case your house burns down. You have auto insurance in case you get in to an accident. Well, with health insurance there are many reasons to protect yourself.
One of the most important reasons for health insurance is that it covers major hospital expenses such as surgery or intensive care. Without health insurance, you could face potential bankruptcy trying to pay back the hospital bills. It is estimated that 60 percent of bankruptcies in the United States involve catastrophic medical expenses.
How Much Does Catastrophic Health Insurance Cost?
Catastrophic health insurance does not cost as much as traditional insurance; some say as much as 30% less than traditional insurance. It doesn’t cost as much because it doesn’t cover as much as with comprehensive plans.
You are probably looking into catastrophic because you want a safety net and you heard it was very affordable. True. There are many insurance plans that are affordable for individuals and families especially if you are willing to consider a higher deductible. Catastrophic or Major Medical is a great place to start.
Well, I can not tell you how much your plan might cost. Why? I do not know your personal risk factors or what kind of insurance policy you want. Insurance companies base their costs on your risk factors for needing future medical services and the amount of health coverage you want.
I will tell you what are some common risk factors. I will give you some pointers for reducing insurance costs and questions to ask yourself before buying a policy. This may not answer your immediate question “How much does it cost?”, but hopefully you’ll walk away from this article with some information.
Risk Factors
Some of the more obvious risk factors include your current health status, age, lifestyle, habits, and where you live. The insurance companies will want you to answer questions relating to these risk factors. The answers you give will help them determine the cost of your premium. The process of deciding how much risk you have is called medical underwriting. It’s important to remember that each company has a different set of rules they use for underwriting. What one company considers high-risk might only be a moderate risk for another company. That can mean a big difference in your premium rates. So it pays to compare health plans options from several companies.
Reducing Insurance Costs
1. Current Health Status – If your health is good, get coverage now to keep your rates low. Companies reward healthy individuals with lower rates. It is easier to get coverage and lower rates while you are healthy than when you have a medical issue. Also, in most states, individual health insurance policies are “guaranteed renewable”. This means that once a policy has been issued, the policyholder can keep it forever — regardless of medical conditions — as long as the required premiums are paid.
2. Age – The cost of insurance premiums go higher and higher as we age because the probability of getting sick or injured increases as we get older. So consider buying insurance before your next birthday.
3. Lifestyle – Make changes in your life now that will improve your chances of living a longer and more active life. Insurance companies reward wellness. You know what you need to do and not do, but here is the current list:
Get eight hours of sleep per night.
Eat breakfast every morning.
Loose weight.
Exercise more.
Don’t smoke.
Drink alcoholic beverages in moderation.
Take vitamins and supplements as your doctor recommends.
4. Where you Live – Yes, I realize we have to work and support ourselves where the jobs are; but when possible, seek out communities and locations in the U.S. that promote healthy and active living.
5. Pay your premiums annually and on time.
6. Choose a higher deductible. The larger your deductible is, the more money you can save on your premiums. For more information on insurance premiums and deductibles, see….
7. See if you qualify for group health insurance through your employer, professional or religious group you belong to.
8. Get a Health Savings Account (HSA) to cover medical expenses while affording you tax saving advantages
9. Get several insurance quotes. The key to finding the best deals is to make as many insurance price comparisons as you possible can. Take the time and shop around. Health insurance rates can vary by hundreds of dollars from one company to the next. You can call local insurance agencies, visit insurance company websites or go online to insurance comparison sites.
At insurance comparison sites, you simply have to enter your information on the online forms. After you have completed the short online questionnaire, they will match you with local agents in your area who can provide quotes, answers to any questions you may have about coverage, and assist you in every step of the buying process.You can get multiple quotes in minutes. It’s fast, free and you are under no obligation to buy.
Questions to Ask Yourself Before Buying
You have an idea of what you would like to have covered under an insurance policy. You need to have your coverage reflect what your needs are today. As your needs change, say you get married or have a baby, you can add to your present policy or renegotiate a new policy. Don’t pay for coverage you don’t need. Once you determine your wants, ask yourself these questions:
How much is the deductible?
How much are the premiums (payable monthly, quarterly or yearly)?
Are these calculations in line with my/my family’s budget?
How much coverage do I/we really need?
Can I/we afford to cover my/our own doctors’ visits and prescriptions?
Do I/we have any preexisting conditions requiring frequent medical visits or treatments?
Am I/are we a generally healthy individual/family?
What is the lifetime annual benefit (the yearly limit your insurer will cover)? Will this meet my/our needs?
Hopefully, this information will give you an advantage when you begin shopping for the right insurance plan that fits within your budget. Get several quotes online when considering any health insurance or any insurance for that matter.
Quotes available in all 50 states:
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