The cost of health insurance for some families can feel unreasonably high. It might seem like a financially wise decision to skip the cost of a premium to pay out of pocket.

It’s not.

Even if the only health insurance you carry is a catastrophic policy, you’ll have something to fall back on financially if the unexpected happens.

You will also get to experience these benefits when you have an active health insurance policy.

What Are the Benefits of Carrying Health Insurance

 #1. You are more likely to receive the care you need. Households with health insurance are more likely to receive preventative care. That means an early intervention for a serious illness occurs more often with health insurance compared to without it.

#2. It saves your credit. Not paying a medical bill can be devastating to your credit score. Just 3-4 medical bills, sent to a collection agency for being 120+ days past due, could drop some credit scores by 100 points. That means higher interest rates for all big-ticket purchases which require financing, like a mortgage or a car loan.

#3. It might be required for an educational pursuit. Some colleges and universities require an active health insurance policy as part of the enrollment process.

#4. You may experience shorter wait times. Hospitals are required to provide emergency care, regardless of whether you can pay or not. If you need a specialist procedure, however, and it is not deemed to be necessary, you could be asked to wait. Some medical professionals can refuse service in non-emergency situations if you have an outstanding bill.

#5. It gives you choices. You often have more choices in the doctors you can select when you have an active insurance policy, compared to the cash-only approach.

What Health Insurance Plan is Right for You?

The level of care you believe your household will require dictates the type of healthcare plan to pursue. Families with children should consider a policy with a low family deductible and full coverage on annual checkups, vaccines, and other mandatory services.

For singles, a catastrophic plan is a way to save money, especially if you have a history of good health.

Most households fit somewhere between these two extremes. Think about your health, budget wisely, and consider purchasing the best possible health insurance your finances can support right now.

We promised to talk about the different types of health insurance plans. So, we will not only list them; we will be comparing the plans. In the US, there a many health insurance plans, but the goal of each policy is to protect you against health risks.

Everyone in the US falls under four (4) categories when it comes to health insurance. The first class is where the majority falls; they get their health insurance from their employers. The second level gets theirs through the unions. Those not under these two groups get their health insurance from the government. There is the last group of people that are uninsured. This set prefers to take on the risk of health emergencies themselves.

Major Health Insurance Plans

In compliance with Affordable Care Act also called the Obamacare, health insurance providers have improved the quality of their service. The improvement is as a result of the improved standards for service delivery by the government.

The primary healthcare insurance plans include;

1. Health Maintenance Organizations (HMOs) plans

HMOs are the most popular health insurance providers, and they offer prepaid services. Their services include preventive care where a beneficiary can visit the hospital for periodic checks. There is a monthly fee called premium that subscribers pay to the HMO. The payment is in exchange for a health care service which includes the family.

2. Preferred Provider Organizations (PPOs) plans

PPO plans are a bit restricted. The reason is that there is a network of healthcare providers to choose from. This type of policy is suitable for subscribers who frequent the hospital yearly. The PPO plans, unlike the Exclusive Provider Organizations EPO plans, allows subscribers to use providers outside the network.

3. Point of Service (POS) plans

The POS plan offers more flexibility for subscribers. It is suited for people who do not mind spending a bit more than the required premium. The plan combines the HMO and the PPO plans, and it is versatile.

Health insurance or private health insurance is one of the most important of insurance products one needs to get. It is a type of protection against the risk of medical emergencies. There are many types of health insurance services on the market.

Studies reveal that over 60% of personal bankruptcies are as a result of medical expenses. The cost of healthcare rises by the day in the society. The increase in price is partly due to the cost of cutting-edge research and the sophistication of the equipment in use nowadays. The cost of healthcare, health insurance is the best way to protect oneself from the risk.

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