Everyone knows the importance of insurance, but as a young and healthy individual, what kind of policy do you need? If you’re the type that eats healthy, exercises, and doesn’t have serious pre-existing conditions there’s a good chance you don’t need to spend a lot of money on a policy that has all the bells and whistles. Instead, you’ll need to focus on a policy that will be there when you need it. A policy that covers accidents and serious illness is more important to someone that is young and healthy than a policy that covers routine doctor’s visits. Before you sign up for a policy, make sure you’re choosing one that meets your needs.
Consider Frequency of Doctor’s Visits
How often do you go to the doctor on average? If your answer is once or twice per year for a routine checkup and a visit during cold and flu season, you don’t need to spend a lot of money on a policy that has low copayments for doctor’s visits. This means you’ll be able to save a lot of money on your policy. For example, if a full-blown insurance policy were to cost $350 a month and offered copayments as low as $10 for doctor’s visits and another policy was $150 a month and covered 50% of the cost, you’d be saving a lot of money by going with the second policy. Again, it depends on how often you visit the doctor’s office, but for someone who is young and rarely gets sick, a full-blown policy is usually overkill.
Don’t Overspend on Prescription Coverage
Do you currently take medication on a regular basis? If the answer is no, you don’t need to spend extra on a policy that has great prescription coverage. For example, if you get sick and have to have antibiotics, you’ll spend less than $10 on the medication. While some insurance policies may be able to get you the prescription for free, it’s not worth the extra expense.
Focus on Covering Serious Illnesses and Accidents
Those that are young and healthy should focus on an insurance policy that has low deductibles for emergency care and serious illness. What this means is that you want a policy that doesn’t require a large out of pocket expense before the insurance pays anything. The money you save on a plan that has higher copayments for doctor’s visits and prescriptions can be put towards a policy that has a much lower deductible. For example, instead of having to pay the first $5000 of a hospital visit, you may only have to pay the first $1000.
The bottom line is to spend money where it counts. If you don’t go to the doctor often and aren’t on expensive medications, you want a policy that will cover the things you can’t, such as ER visits. This means that you’ll want a policy that has a low deductible for such care. Don’t get caught up in how much you’ll pay for services you rarely use. An insurance policy is only valuable if it helps you in your time of need.
