How Does You Health Insurance Company Stack Up to the Competition?:

The health insurance industry is highly competitive and it is important to comparison shop before picking the best plan for your needs. Many people select their insurance policy based solely on price, and end up not having enough coverage and regretting their decision.

Before falling into this trap, here are some helpful ways to measure up your insurance company.

1. Measure the cost. Since price is the number one factor for many people, it is important to decide if you can afford your new insurance policy now, as well as in the future. If your situation were to suddenly change, would you be able to meet your premiums? Many insurance companies offer discounts for pre-payment of premiums and you may end up spending significantly less by paying yearly premiums instead of monthly premiums.

In addition to monthly premiums, you will need to compare the amount of the deductible as well as the lifetime payout for the policy. While you may not need a lifetime payout of $1 million right now, long-term care or a sudden illness can quickly add up. You will need to make sure that you can financially meet your deductible and that the payout amount is high enough should you need more care.

2. Measure the exclusions. All health insurance plans have exclusions, but the amount and complexity can vary greatly. If you have specific needs or a pre-existing condition, you will need to make sure that your coverage needs do not fall into the exclusion category.

3. Measure the add-ons. If certain types of coverage such as dental or maternity are not included in the plan and offered as a benefit rider or add-on, you will need to make sure that the cost of adding these to your plan will not be too expensive. You may be better off getting a second insurance policy for these needs to control your costs.

4. Measure the AM Best Rating. The AM Best rating system exists to help consumers know how reliable an insurance company is. This is a very important consideration when you are looking for a new insurance company. You will need to make sure that your company will be around should you have a claim.

5. Measure the network. If your new policy is an HMO or a PPO that limits your ability to select a physician, you will need to make sure that your current physician's services will be covered. Don't be afraid to shop around for a different policy if you can't find one that will allow you to see your current physician.

6. Measure their service. Before spending the rest of your life on hold, measure up the customer service of an insurance company before you purchase a policy. If you have a life or death matter, you don't need to wait for hours on hold. A reputable company should have a short wait time to answer your questions.

<< Back