There are several different types of health insurance plans out there. When shopping for health coverage, it can get confusing. Each different policy is broken down to satisfy every individual’s needs. It’s important to understand that there isn’t just one type of policy out there.
Types of Health Insurance Plans
Major Medical – This is the most popular type of policy because of the well-rounded medical coverage. The insured pays a monthly premium in exchange for protection from major medical expenses and a small fee for doctor office or emergency room visits, called a copay.
Catastrophic – A catastrophic policy is designed to protect you from major losses. These policies have a larger deductible than your standard major medical policy ($10,000 or more) to keep monthly premium payments to a minimum. People typically buy this kind of policy if they don’t mind paying for minor medical costs but want protection if anything disastrous were to happen.
Indemnity – There are several different types of indemnity policies on the market. Indemnity plans have similar benefits to major medical policies but come with stronger limitations. These are sometimes selected by individuals as a more affordable option.
Guaranteed Issued – Most carriers require that your application gets reviewed by their underwriting department to determine whether or not you are insurable. Individuals with an extensive medical history or pre-existing conditions often do not pass their underwriting guidelines. A guaranteed issued policy will accept individuals with pre-existing conditions and is one of the last options for people who have been declined by other companies.
Discount Plans – There are many advertisements out there for discounts on medical services. This might sound like health insurance, but it’s not considered a real health insurance policy. You pay a monthly premium for a discount on your medical services. The amount of discount and what it actually covers is very limited. You are restricted to their specific network of doctors. Discount plans should not be used as an alternative to your health coverage. Discount plans are not recommended.
Which Plan Is Right For You?
With all the different types of policies on the market, it can be hard to decide which policy is going to be right for you. It would be in your best interest to first speak with a licensed health insurance agent. You can explain to them your situation and what you are looking for in a policy so they can give you their best recommendation on which type of policy you should or shouldn’t apply for.