When searching for low-cost health insurance you have a lot of options, but they aren’t all good for you. Cheap insurance may be just that–cheap. There is a difference between low-cost and cheap. In order to ensure you get the kind of coverage you really need at affordable prices, you need to do some research and find the right carrier. Following are a few tips on how to find low-cost health insurance.
Sometimes a Bargain Isn’t a Bargain
In your quest to secure decent health insurance coverage at bargain basement prices, you need to be patient. Don’t take the first offer that comes along simply because it saves you a few bucks. Sometimes a bargain isn’t a bargain. It could end up costing you more than you save on monthly premiums with the first claim you have to file. For instance, if you opt for a policy with an extremely high deductible because the monthly payments are low and something devastating happens that causes you to be out of work for just a few days, the entire cost of the medical bills may have to come out of your pocket–and there goes your savings. If a similar thing happens a few more times you could end up financially overwhelmed. There is nothing inherently wrong with a high deductible policy, but you need to make sure you will have enough cash available to deal with a crisis.
Research Options
Instead of taking the first offer, do some research and find out what your options are. Try and think of what the worst is that could happen, and make your plans accordingly. Determine how much money would be needed if you weren’t able to work for an extended period of time, or if a family member came down with a crippling disease. After you have a good idea of how much coverage you’ll need, you should try and find an insurance carrier that can provide the coverage you need at a price you can afford. Start by contacting various companies and ask for insurance quotes for the type of coverage you’ve determined you will need. Compare their prices and pick an agency you believe you can work with.
Detailed Plan
Once you’ve found an agency you can trust, sit down and talk with the agent assigned to you. Together you can work out a detailed plan that will provide you with low-cost health insurance. It may be possible to keep your payments low by making a lump sum payment instead of monthly premiums. Keep high deductible options in mind, but make sure you have enough money laid by to pay the deductible. You may wan
t to consider opening a savings account where the money will be used for emergencies only. In that way your money will be drawing interest until you need it.
Ask About Group Plans
One way to save money on health insurance is to get coverage through a group plan. It is fairly standard practice within the insurance industry to offer low-cost group rates to those who are eligible. Find out if the company you work for offers a group plan. If they don’t, ask your insurance agent what groups or organizations their company offers group rates to. If you belong to one of them make sure you tell the agent. If you don’t belong to a particular qualifying group you may want to consider joining in order to take advantage of the savings. There is one caveat where group plans are concerned–they are generally of the cookie-cutter variety. They usually don’t allow you to choose your own deductible, and the premiums are usually standardized for all members.
Take Care of Yourself
Although there are no guarantees, if you take care of yourself and live a healthy lifestyle you will lower your chances of having to file a health insurance claim. Most companies will reward their customers with lower rates if they don’t have any claims filed during a billing period. By eating the right foods and getting the proper amount of exercise you can help maintain your health, and thereby enjoy the benefits not only of low-cost health insurance, but you will undoubtedly feel better in the process.
Guest post from Bailey Harris. Bailey enjoys writing about insurance, finance, and related topics.
