About Individual Health Insurance
About Individual Health Insurance
Indi
vidual health care insurance provides coverage for only one
individual, or family. In general, individual plans are more
expensive than group insurance. You can obtain individual plans
directly from a company who offers them. The company with whom
you apply will evaluate you from a health standpoint, in terms
of how much risk you present to them. Usually, they'll provide a
questionnaire for you to fill out, asking various questions
about your current and past health history. They will determine
your risk accordingly, from which a premium will be generated.
Things to look for: Most individual plans fall under managed
health care plans. Under this, you can opt for an HMO, PPO, or
POS plan.
Guaranteed renewable: Your insurer cannot cancel your coverage
if you become sick. If you continue to pay your insurance
premium, coverage continues.
If available, group insurance is generally a better option,
since it is usually more comprehensive and less expensive than
individual insurance. However, individual coverage is ultimately
better than being uninsured in the event of illness or injury.
Although you may think you can do without health insurance, you
are taking a major risk if you choose not to get coverage. An
unexpected illness or serious injury can put you and your family
under financial stress.
In a group insurance situation, the provisions of the policy are
negotiated between the insurer and master policy owner (usually
an employer or association). With indi
vidual insurance, you are directly in control of your
policy. You can negotiate to have certain provisions included or
excluded, and you can often choose your deductible amount and
co-payment percentage. Keep in mind, however, that these things
will have an effect on your premiums.