Whole vs Term

As there are several health plans offered by different insurance companies, it would be very wise if you familiarize yourself even with just the basic info. Heath insurance is a very important matter that you don’t just go around looking for the most inexpensive one. You must know the coverage you and your family can get and select the plan you can most benefit from.

There are three basic types of health insurance policies: Individual health insurance policies, group insurance policies and state-administered insurance policies.

Individual Health Insurance Policies

These health insurance plans are taken out by individuals who may be unemployed, unable to secure group policy coverage or who are self-employed.

Individual health insurance policyholders:

* Must pay all policy premiums to remain insured.
* May pay for coverage for a spouse and dependents.
* Can claim tax benefits on policy premium payments.
* Are free to “shop around” for the best policy for their budget.
* Will likely pay more in premiums than group policyholders.

Although individual health insurance may cost more than group health insurance, policyholders aren’t at risk for increases to premiums or a drop in coverage due to an employer’s decisions.

Group Health Insurance Policies

This is the type of policy offered by employers, unions or other organizations. In theory, a group of people pooled together makes insurance premiums more affordable.

Group health insurance is usually:

* Sponsored by an employer who may pay part of the insurance premiums.
* Available to a policyholder’s spouse and dependents at an extra cost.
* More affordable than individual health insurance.
* More extensive in terms of services and coverage than individual policies.

Policyholders are limited to the type of insurance offered by the group, which may mean less flexibility regarding health care providers and medical services.

State-Administered Health Insurance Policies

These are policies available to low-income families, senior citizens and the unemployed. They are designed to provide health insurance coverage for limited-income families and individuals. Medicare and Medicaid are two types of state-administered health insurance policies.

Typically, state-administered health insurance:

* Offers free or very cheap health insurance to those who qualify.
* Doesn’t deny coverage for pre-existing conditions.
* May be available to family members as well as the policyholder.

You can find out more about the types of state-administered health insurance available in your state by researching the information at the U.S. Department of Health and Human Resources’ Centers for Medicare and Medicaid Services webpage online.