4 Classic Mistakes to Avoid When Buying a Health Insurance Plan

Health insurance is a mandatory investment every person or family makes each year to ensure good health and peace of mind. With hundreds of health insurance plans available today, it’s easy to lose focus on the important aspects when buying health insurance that can result in insufficient medical coverage or overpaying for health insurance. Here are some common mistakes you need to be cautious of and useful tips on how to avoid them. 

1. Shopping for insurance without adequate knowledge

Knowing basic insurance terms and concepts like deductibles, copayments, coinsurance, max out-of-pocket isn’t enough to select an affordable insurance plan. You need to dig deeper to get answers that would make a direct impact on your total insurance cost. Consider asking if you are eligible for a tax credit based on your salary; does coinsurance seem better or a deductible of $2500 make more sense; if coinsurance is better, then does the plan cover prescription drugs; and so on. 

Useful Tip:

To ensure you have all the crucial aspects covered while shopping for health insurance, it’s always safer to reach out to the subject matter experts. Insurance agents take care of all the necessary details to help you choose a rewarding health insurance plan that best suits each individual, all at no cost. 

2. Buying the same insurance as that of a friend or relative

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Many people choose a plan by selecting a similar plan as their friends or relatives. Their plan may be the cheapest or working well for them but very likely may not fulfill your health goals. Each individual’s needs are different and so are their goals. One-size-fits-all is a big no-no when it comes to selecting a health insurance plan.

Useful Tip: 

The solution? –  Personalization. When selecting a health insurance plan, make a note of your medical needs (mandatory & precautionary), prescription drugs, hospital visits, ER visits etc. you anticipate in a span of a year. Having clarity on your medical requirements will help you choose a plan that truly will save you from surprise expenses in the long run.   

3. Picking a policy solely based on low premium

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Sure enough, low premiums and higher cost-sharing can look like a better deal than high premiums and low-cost sharing. But in reality, neither of them is better than the other. It depends on your personal situations and preferences. 

For example, if you are in good health in general, you might save money with a low premium and higher cost-sharing as you don’t anticipate doctor visits very frequently. But if you have any ongoing medical conditions, you might be better off selecting a higher premium and lower cost-sharing in order to save on multiple doctor visits or prescription drugs etc. 

4. Not taking advantage of free expert advice 

A report by NY Times states that “Picking health insurance is really hard”. I bet, many of you can agree here. 

Health insurance is a complicated financial product that requires an understanding of insurance concepts, advance planning, and cost predictions. The easiest way to get help is by talking to industry experts who know the tricks of the trade and can help you compare plans and select a plan based on your medical requirements well within your budget.  

Useful Tip: 

At Sunsure Insurance, our team of experienced and licensed agents are here to listen to your needs, help you understand your options, and enroll you in a plan that offers maximum savings and benefits in a budget. Reach us at 866-261-7104 to speak to an agent or email us at info@sunsure.me. We reply to all emails in a timely manner. 

We are keen on hearing about your experiences with purchasing a health insurance plan. Let us know in the comments below.