I believe that there are a few factors to keep in mind when choosing an insurance company. I believe that it is necessary for you to do your homework and not just go with the first company to call. With that in mind I want to introduce to you several parameters to consider when choosing your health insurance company.
The first factor to consider is insurability. In a previous article I addressed the utilization of common sense in being insurable and what makes you uninsurable. Depending on your level of insurability will determine the number of carriers that will be willing to insure you.
If you are healthy you might have scores of companies willing to extend insurance to you. The converse is just as valid. If you are sickly you might only have one or two companies willing to take on the risk of providing you with health insurance. Therefore, do your homework and find a company that will insure you.
The second factor to consider is the company’s financial rating. This cannot be overlooked. Too many people that I have counseled with came to me having a previous carrier that is not financially strong enough to pay their claims. Common financial rating companies are A.M. Best and Standard & Poors. Getting a company’s rating from them is akin to checking out a bank before getting your mortgage through them.
Third, consider the companies network. There is no sense in going with a company if your doctors do not accept them. Also, in checking out their network, check out the company’s coverage outside of the network as well. Ask your agent that, “If I were to travel and become ill, will I have the same level of coverage, as I would, if I were home and became ill?” You want the peace of mind to know that you were to go on a vacation and became ill, that you would still have coverage.
Forth, consider the coverage. The coverage must cover what is important to you, the consumer. If preventative care is very important to you, then a policy that does not offer preventative care should not be a consideration. I want to know from a company that if I invest money into an insurance policy, that the benefits provided by that company will meet my needs.
Most people would list the coverage requirement higher in the list, but I do not. The reason for this is that if I have a policy that promises me all these great coverage benefits, but the company won’t insure me, or they will insure me, but cannot pay their share of the bill, or even worse they will insure me, but their network is so small that they have no doctor coverage, then what good is the benefits that the policy gives?
I only purchase an insurance policy for my family if I am positive that the company will provide coverage, pay the bill, give me a large list of doctors to choose from and have great coverage benefits.
Finally, I consider price. The price I pay for an insurance policy must be reflective of the quality of policy I purchase. I would not expect a Mercedes to cost the same as a Yugo. By the same measure I do not expect a quality health plan from a reputable insurance company to be the same cost as a fly by night discount plan. I encourage you to not be afraid to pay for quality. It will cost you less in the long run to have a quality insurance plan versus going with a cheap plan and gambling that you will never be seriously ill.
Consider these five factors when purchasing your next insurance policy and I will tell you that you will sleep better at night knowing you have done your homework and chosen the best policy for your family.
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