Six Mistakes You Need to Avoid When Buying Health Insurance

Six Mistakes You Need to Avoid When Buying Health Insurance

November 25, 2016
health insurance

With healthcare costs now larger than ever, it’s no wonder that health insurance has become so important. In fact, few things are as important. Health insurance can protect both your health and your finances. Unfortunately, because it’s so important, a lot of people make several big mistakes when rushing to get it.

These mistakes end up costing them money. And, although it’s true that having health insurance can protect your finances, throwing money away when you don’t have to is definitely not alright.

Here are some of the most common mistakes that can cost you money:

1. Health insurance is not just about premiums and deductibles

A lot of people only look at premiums and deductibles when purchasing health insurance. It makes sense, if they want to save money, but there are other things to consider as well. Some insurance policies only cover parts of some procedures, which can be really expensive. S, if you’re not careful, you end up paying much more than your deductible.

2. Always read the fine print

This rule applies to everything involving a contract, not just health insurance. You need to make sure that you are fully covered. Some policies look great on the surface, but they may not cover uncommon surgeries. If you’re unlucky, you could end up losing money.

3. Always shop around

If you want to save money, you have to visit multiple providers and get as many offers as possible. Whether it’s home insurance, life insurance, car insurance or health insurance, this is the best way to make sure that you get the best coverage at the best price. So don’t be lazy and don’t settle for the first thing that comes your way.

4. Too much insurance isn’t really a good thing

Insurance is useful, but you don’t need to exaggerate. If you are young and healthy, you probably don’t need the high-end health insurance that covers you against any situation imaginable. Those come with very high premiums.

5. Don’t think that you’re too healthy

Bad luck is out there and it can hit you at any moment. Even if you’re young and healthy, you still need to be covered. Insurance protects you against unexpected events. Remember that! You can’t predict accidents or illnesses.

6. Keep an eye out for open enrollment periods

Open enrollment periods allow you to reassess your need for health insurance and adjust or buy coverage as necessary. If you miss an open enrollment period, you may have to pay more for taking out insurance during a closed enrollment period, or go without insurance until the next one.

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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