Buying Health Insurance For The First Time – What To Look For?
A healthy life is a blessing of God but life is not always rainbows and sunshine. It is surrounded by so many unexpected and unpredictable events that can easily create a chaos in one’s peaceful life, which means going under a huge medical debt or going broke. Especially in Pakistan, where the healthcare system is divided into two sectors. The local/government hospitals are affordable but poorly organized and inadequate. On the other hand, private hospitals are structured and provide good quality healthcare but are really expensive for a normal salaried person.
The good news is health insurance is the gateway to protect you and your loved ones or at least prepare you beforehand for the chaos that can put you in financial distress and risk your financial security. But, when it comes to buying health insurance for the first time, it can be complex and confusing without knowing the facts. To make the most out of your health insurance plan, there a few things you need to keep in mind. So, here we have gathered all the good information you need to buy a good health insurance policy that meets your needs without putting a dent in your wallet.
Understanding Health Insurance:
Health insurance is a type of coverage that pays medical and hospital expenses suffered by the insured according to the policy bought by the insured. This policy either compensates the insured for the costs caused by injury or sickness or directly pays the costs to the respective healthcare providers. Sometimes basic health insurance plan is included in the benefit plans for employers however; different plans and packages with fixed premiums are available by reputable insurance companies in Pakistan for individuals, they can buy it for themselves and for their families.
Basic Terms of Health Insurance:
For first-time health insurance shoppers it is important to understand the meanings of some common key terms associated with health insurance. As knowing these terms can affect the overall costs you will pay and the coverage you will receive.
- Premium: The amount you pay every month to have your health insurance.
- Out Of Pocket Costs: Regardless of premium, many insurance companies share costs between them and their buyers for their medical expenses. These are called out-of-pocket costs.
- Deductibles: This is the amount you must pay for healthcare services from your own pocket before your insurance starts paying on your behalf.
- Co-Payment: Also known as co-pay, it is fixed amount that you must pay for specific medical care, regardless you have reached your deductible.
- Co-Insurance: It is a fix percentage of the total bill of the covered medical service that you pay and the rest percentage is covered by your plan. It kicks in when you hit your deductible.
- Out-Of-Pocket Maximum: this is the maximum amount you will pay by yourself for your covered health services annually. Once you have paid this amount, your health insurance will cover the rest of your medical expenses for that year.
- Pre-Existing Conditions: Any illness, injury, or ailment experienced by the insured before a new health coverage plan start.
Types of Health Insurance Plans
There are so many health insurance policies available and things to consider when it comes to choose the best health insurance plan for yourself or your family. Thankfully in the marketplace, insurance plans have been neatly categorized into four types to help you get your policy smoothly and quickly. The categories are: platinum, gold, silver, and bronze. These categories are not grounded in the quality or amount of care you will receive instead they are based on how much expenses you will pay and how much will be covered by the insurance company.
Bronze is the lowest category which will cover the lowest of your medical expenses whereas, platinum is the highest category which will cover most of your medical expenses. The general rule is the more you will be covered the more will be your premium and less the out-of-pocket costs will be. The trick to determine which coverage you will need is to understand how much coverage you require from your insurance plan now and in the future, depending on that opt for the plan that covers those needs.
How to Shop For Health Insurance:
Buying a quality health insurance plan for the first time seems daunting but because of online health insurance marketplace, now there are good chances to find a plan that fits your physical health and your financial health. You can discover many options and information along with the benefits and coverage limits offered by various insurance plans from different insurance companies.
Karlocompare helps you compare all the health insurance plans offered by all the leading insurance companies of Pakistan and makes sure that you get the most out of your purchase.
Health insurance doesn’t have to be complicated if you understand all the specifics and facts. The most important thing to remember when buying health insurance policy is that it’s not about finding the best deal on premium but it’s about finding the plan that best suits your health.