5 Things You Must Know Before Buying Life Insurance Plans

5 Things You Must Know Before Buying Life Insurance Plans


There are a lot of uncertainties that we face in life. With the increasing cost of healthcare and many diseases that we expose to every day, we all have a reason to worry.

It is costly to live without a solid healthcare cover from a reputable insurance company. Despite the harsh economic time, we still cannot escape an investment in health insurance.

When you opt for healthcare insurance, there some factors that you have to consider. This article clarifies those factors and gives you some peace of mind whenever you look forward to buying a health insurance policy.

1. Premium and Coverage Combination

When buying a health insurance premium, most people are attracted to insurance plans with lower premiums. However, you must first consider the insurance coverage before looking at the premiums you’ll have to pay.

If the premium for the policy is low, then find out the extent of the coverage. If the coverage is not extensive, but the premiums are very low, that is not worth a shot. So, the rule of thumb here is to determine the reasons for low premiums first before buying the policy.

2. Network Hospitals or Provider Network

Another essential factor to consider when buying insurance policies is the insurance provider’s network. That is the type and number of hospitals that accept the insurance policy. Visit the insurance providers’ website to find out the list of hospitals that accept the health insurance policy they are offering. You want to ensure your local hospital appears on the list.

Sometimes the insurance provider may lack a specific network of hospitals. In that case, you should always find out what the insurance policy covers first before buying.

3. Coinsurance

Coinsurance refers to the amount you are supposed to pay for your medical bills once your insurance company has paid its part. In most cases, insurance companies will only pay their part of the bill if you’ve met the deductibles.  Other providers will use your benefits to determine the percentage they should pay.

Read more: The Importance of Health Insurance

Therefore, before you buy a health insurance policy, you should determine the insurer’s coinsurance terms. It is crucial to know whether you can meet the out of pocket threshold set by the insurer.

4.Pharmaceutical Coverage

Health insurance goes beyond meeting the medical bills. You have to buy some medication based on your prescription, and your insurance policy should cover that. Find out the exact proportion of your co-pay and whether the insurance policy includes your pharmacy bills.

5. Waiting Period Clause

The waiting period clause is another aspect that you should confirm before you buy any health insurance policy. Most insurance policies will not accept or meet any medical bills that arise from a pre-existing illness.

Depending on the plan you choose and the insurance provider, the waiting period can range between two and four years.

You must ascertain if the insurance policy will not cover you if you have any lifetime illnesses like arthritis, HIV/AIDS, and diabetes.

Final Thought

Choosing an insurance policy is never a walk in the park. Besides checking the insurance company’s financial position and brand reputation, you have to dig more before buying any health policy. If you consider the five factors mentioned here, you are always good to go.


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