Tips for Reducing Your Medical Insurance Premiums
Medical insurance is a kind of coverage, which covers a specific or a partial portion of an individual’s risk in the event that he or she incurs medical expenses. Like other kinds of insurance, though, there is also risk among some people. This risk is the element which determines whether an insurance company will accept your application or not. In order to successfully secure an appropriate policy, you will have to fully understand the different factors that go into determining who will be accepted as well as the price that you will have to pay for the insurance.
The most significant factor considered by health insurance companies when it comes to approving or denying the application for coverage is the applicant’s health at the time of application. For instance, if you had just been out of the hospital and have been treated for a non-life-threatening injury or illness, then the hospitalization expenses do not count as a hospitalization expense on your health insurance application. But if you had gone in for an operation and spent a week or two in the hospital, the coverage may count. Likewise, if you were hospitalized for the flu or pneumonia and had not been treated, then your claim will probably be denied as well.
Aside from considering your health at the time of application, health insurance companies also look into your personal details. They take these details to determine your risk level. The details they consider including your physical attributes, your lifestyle, your habits, and your medical history. Based on these details, the insurer can either deny or accept your application. However, just like with every other type of coverage, there are additional benefits and limitations that you have to know about so that you can properly assess your chances of getting these additional benefits and the cost of the additional benefits. These are also called the deductible and the co-payment.
There are some medical insurance plans that come with add-on coverage. This basically means that you can choose to get certain services or benefits which come with a price. In the case of hospitals, for instance, you can decide to get hospitalization coverage which is an integrated package. On top of this, you can also opt to get complementary services such as prescription drugs, diagnostic tests, or psychotherapy. This would help you take good care of your health needs and prevent you from spending money for services that you don’t need. In order to maximize your hospitalization expenses, make sure to ask your insurer how much of your additional benefits can be applied toward your hospitalization expenses and how much of them can go toward your deductibles.
There are various types of deductible that you can choose to incorporate in your health insurance policy. If you have high medical expenses but low deductibles, your premiums may take a bigger hit than necessary. Thus, it helps to look at your premium cost relative to your monthly income. Some insurers will give you a discount if you have a higher annual income. Similarly, if you have a higher co-pays or deductibles you may need to research whether or not your insurer will provide a discount.
Another popular way to save on medical insurance expenses is to get add-on coverage for critical illness. Basically, add-on coverage is when a certain number of days are added to the life of your policy. For instance, if you plan on having a child in the future, you can opt to purchase critical illness coverage. With this type of add-on coverage, your premium will be significantly lower compared to those who do not have such coverage.
As you can see, adding certain benefits such as critical illness coverage can dramatically lower the amount of medical insurance premiums you will need to pay. If you don’t already have this type of coverage, it’s certainly something you should consider when purchasing a new health insurance policy. Remember that though the premiums for critical illness are considerably lower, they may still be higher than your current premium. This is due to the fact that the policy will be for a much longer time.
Many people are now looking towards purchasing supplemental insurance to supplement their major medical plans. Supplemental plans are basically “safe” plans which cover things like prescription drugs, vision care, dental care and most importantly emergency services. These plans are designed to provide you with an added amount of coverage that is usually just enough to help you pay the bills while you wait for a doctor’s appointment. These supplemental plans may be purchased independently or in group policies. Typically, a larger company will offer a more extensive and expensive supplemental plan to their employees. For people who are looking for affordable major medical coverage, these plans may be a good option.