Business — May 24, 2020 at 7:08 am

What You Should Know When Applying for Private Health Insurance


Being healthy is important. Health is one of the biggest issues nowadays in everyone’s lives, and people need to be careful with their health because we all know that getting sick is very expensive. A person’s sedentary lifestyle, poor eating habits such as eating too much junk food and intake of sugary drinks, and lack of sleep have become the main cause of various health conditions.

The major diseases like heart disease, diabetes, cancer, obesity among others are becoming every patient’s main concern. Getting hospitalized is costly, so to avoid getting bankrupt in the future in case of unfortunate events, then you may want to apply and buy a health insurance plan. If you don’t know anything about it, the following are some tips on what you should know when applying for private health insurance.

Know the Terms

Before you buy a health insurance plan, know the terms used to avoid any confusion. Terms such as premium, co-insurance, co-payment, deductible, coverage limits, capitation, exclusion, and explanation of benefits, must be reviewed so you know what you’re getting yourself into. Some of their definitions are the following: Premium is known as the amount to be paid for getting the health insurance plan; co-insurance is the fixed percentage of the amount which a person has to pay; co-payment is the cost paid by the insured person to get the doctor service for every visit; the deductible is the cost which the insured has to pay for every doctor visits and drug prescriptions before the insurance company pays its share.

Know What Type of Plan

Check first if the health insurance plan is a managed care system or an indemnity health plan. Managed care system is either a health maintenance organization or a preferred provider organization. In this type of plan, you will have minimum expenses paid by you or your employer. On the other hand, Indemnity health plans, also known as fee-for-service plans, you pay a portion of the total bill then the insurance company will pay for the remaining balance. Usually, you can pick your preferred doctors in this type of insurance plan.

Fee, Benefits, Doctors, and Examinations

To know the cost that you need to pay, then you need first to find out the amount of the premium required. Different insurance companies have their policies, so make sure that you compare them. Ask if you also need to pay other fees such as co-payment in receiving health care services. Inquire limitations such as picking your desired doctors or health care facility, and routine examinations such as vaccinations, annual physical exams, and other routine check-ups. Inquire other benefits included in the plan, such as eye, dental, and drug prescriptions.

Certified Insurance Agent and Company

To get the best insurance plan, make sure that you consult with a certified, professional, and trustworthy insurance agent and company. They will help you go through with the application process, know all your country’s insurance regulations, and help you with all your concerns. You can ask them if they have software for private health insurance claim processing. It will be a big help in providing a faster settlement process and decreases fraud encounters.

State Policies for Health Insurance

Note that each country or state may have specific exemptions or differences regarding the insurance policy coverage. Most of them will issue this information online and can be found easily if you do some research. Check your government’s website and search for health insurance policies or private health insurance.

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