Low Cost Health Insurance Can Cost More Than You Think

There are right ways and wrong ways to buy low cost health insurance. Buying health insurance is a difficult task in itself. When budgetary constraints are added, the only option seems to be finding low cost health insurance. It can be done, but may require lots of research and consultations with several insurance agents. Once you have several insurance quotes, however, that is not the end of your quest. The real task of finding the best low cost health insurance has just begun.

You will have to supply medical history information on your application for low cost health insurance. Insurance companies maintain huge tables of statistics regarding age, gender, diseases, lifestyles (smoking, drinking, etc.) expected lifespan, and uncountable other bits of information. These statistics are used to determine a quote for low cost health insurance by estimating how much medical costs the insured is likely to incur, and how often. If medical care is required or currently ongoing, the tables predict the risk to the insurance company. If the cost vs. risk analysis is acceptable, the company issues a quote for low cost health insurance.

Low cost health insurance presents a dilemma to the person applying for it. Higher insurance premiums generally mean that better care is available and that the plan is flexible. Low cost health insurance premiums are likely to be lower, meaning that the plan is probably rigid and offers less care than the more expensive policy. It is necessary to balance the insured's budget against the monthly premiums to buy the maximum amount of low cost health insurance possible.

One warning about low cost health insurance premiums is that they are low because deductibles and costs per incident are likely to be high. During an accident or illness, the insured is likely to pay much more out of pocket than the owner of a more expensive plan. Co-payments and prescription drug benefits are likely to be lower as well, meaning even more out of pocket medical expenses. Carefully check all these numbers before agreeing to a low cost health insurance plan, so you know exactly what to expect when a medical emergency arises.

If possible, consider your low cost health insurance as a backup plan only. Cheap insurance is better than no insurance at all. However, if you can eventually secure better medical insurance coverage, you should do so as soon as possible. The best way to utilize your low cost health insurance is to pay the monthly premiums and hope you never need to file a claim.

Copyright 2007 Jim Sterling - All Rights Reserved

The Health Insurance Game

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