HEALTH INSURANCE PLANNING- Excerpts of the book Finance for dad

How to join a health care insurance plan?

For employees, health insurance is usually offered by employers who are members of both the state social security plan, and any private health plan. When this plan is not offered as part of work benefits, the search for an insurance plan could be quite tedious and complex. If you work independently, the best choice could be to join a group of people that you have something in common with and who have affiliations with some insurance company, such as: a professional group or association, a business chamber, a church group, a social club, etc. If none of the above alternatives are available to you, you will have to search on your own. Since you may not be familiar with this topic, the first thing you need to do is to get informed. Reading this book is a good first step, but you should research about this topic thoroughly. The second step involves researching in the place you live. Each state or country has similar institutions, but with some difference in the details. The best place to start researching is the Internet. You will find an endless number of offers. Study them thoroughly, choose the most suitable one for you and then contact them and choose wisely. Whether you get insurance through a company, an association or independently, you will have to go through the policy and be familiar with the coverage and clauses.

Is it better to get individual health insurance or one for groups?

Generally speaking, a collective insurance policy has more advantages. The premiums are less expensive and, in case of any problems with the company, the power of a group is more important. Besides, the administration of the premium could be in charge of a person who is qualified to read the small print.

What kind of health insurance is more convenient: the traditional one or the managed health plan?

Neither plan is more advantageous. They both have attractive characteristics for some people. If you consider that choosing your doctor with no restrictions is an important feature, then you should choose the traditional system. However, if you are not a fan of filling out forms and collecting bills every time you need to go to the doctor, this is not the plan for you. Consider the pros and cons and choose the system which plan suits you best.

To help you with this, in Table 5 you will find a checklist with the most relevant aspects that you must keep in mind when it comes to assessing health insurance.

How much should your health insurance cover?

There is no way to calculate a specific amount. There are policies that cover a few thousand dollars and others that cover millions of dollars. Logically, the higher your coverage is the better chance you will have to survive from a serious disease that would demand an expensive procedure.