Tips On How to Buy Insurance


Buying insurance policies is an effective means to manage risks and successfully reduce the financial impacts of such unforeseen events. Why wait for the worst to happen when you can get utmost security, protection, and coverage from an insurance policy. It is true that the concept of insurance can be frustrating at times, but deeper knowledge and understanding about its basics will certainly make you appreciate the use and purpose of shopping for insurance policies.


What is insurance?

Insurance is designed to be an effective risk management tool used by consumers and business entities alike. It provides protection against losses such as those caused by natural catastrophes like typhoons, earthquake, fire, and hurricane. It also stabilizes expenditure while consumers gain the ability to preserve income and financial resources.

Basically, with all these crucial functions, insurance policies offer the peace of mind that you need at present and in the future.

Your main goal when purchasing an insurance policy, be it health insurance, home insurance, or auto insurance is to get the widest coverage at best possible rates. Here are some helpful tips when shopping for the three most basic insurance policies- health insurance, home insurance, and auto insurance.

Health Insurance

When shopping for health insurance, make sure to compare the following factors in between providers:
– Premium rates
– Level of coverage or compensation benefits
– Level of access to medical professionals and health care institutions
– Access to emergency care and after-hours health care service
– Other insurance costs such as co-insurance, co-pay, and deductibles
– Exclusions and limitations

There are three types of health care plan that consumers can choose from:
– Indemnity insurance
– Managed care
> Health Maintenance Organizations (HMOs)
> Preferred Provider Organization (PPO)
> Point of Service Plan (POS)
– Health Savings Account

With indemnity insurance, policy holders are given more flexibility when choosing medical professionals and hospitals as well. When compared alongside managed care, indemnity insurance deems policy holders to pay higher out-of-pocket expenses such as co-pay, deductibles, and co-insurance. In indemnity health insurance, the policy holder will pay up to 20% of the total bill, while the remaining is taken care of by the insurance firm.
Managed care such as those delivered through HMOs, PPOs, and POS allows greater control for policy holders over their health care. It features the following benefits which make it some of the most common health care insurance policies purchased by individuals independently or by companies for their employees:
– Health reimbursement arrangements
– Lower deductibles
– Flexible spending arrangements

Other shopping rules to be followed when buying managed care health plan are:
– Ask your preferred medical professional as to which network they are affiliated with
– Make a concise list of all services and products that you and your family need
– Compare costs in between insurance providers

Never purchase insurance without consulting an expert. There are health insurance agents that can assist you on deciding which insurance will perfectly match that of your needs!