From the April 2012 issue of Benefits Selling Magazine •Subscribe!

Five mistakes people make when buying individual insurance

1) Picking the plan with the highest deductible, lowest monthly costs. Plans with a large deductible always seem like an attractive option due to low monthly premiums. However, if someone cannot meet the deductible in case of an emergency or illness then they will be stuck with a large bill. When choosing a plan, ask yourself if you would be able to cover the deductible immediately in case of an emergency—if you can’t cover it then consider a lower deductible.

2) Not purchasing maternity coverage when pregnancy is a possibility. Maternity coverage isn’t covered in every health insurance plan. If couples are considering pregnancy in the near future or could possibly get pregnant, then maternity coverage is a must.

3) Choosing a plan with high copayments, co-insurance rates for health care services and prescriptions. Almost every health insurance plan requires a copayment at the time of a health care visit so find a plan with an affordable copayment. Copayments vary for physician visits, prescriptions and hospital services, but there’s always a set amount of payment that is required. Co-insurance rates get really expensive for surgeries and hospital visits since you are required to pay a percentage of the rendered services and the rate varies.

4) Picking a health insurance plan without ensuring your doctor is included in the network. Many individuals may not realize that their doctor is no longer covered under a new plan before switching. But if you have a family doctor or a preference then either choose a plan that includes the doctor in the network or find a plan with flexible coverage.

5) Purchasing all your coverage from one company. People often assume that getting all their coverage from the same company will save them money, but this isn’t always the case. Money is also not the only thing to consider, so compare policies from a number of companies to find the one that best suits your medical and financial needs.






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