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When considering a health plan, be sure you understand the full extent of the coverage that is included. If you have more than one option, choose the one with the highest level of coverage you can afford. The higher a plan´s deductibles, copays, and coinsurance, the more you can usually save on premiums. However, you´ll also have to pay more out of pocket for claims. Some of the most common types of individual health policies include:

• Major medical. Also often referred to as comprehensive coverage, a major medical policy provides benefits for most medical expenses, up to a certain maximum amount whether an individual receives services in or out of the hospital. The policy contract may contain coverage limits on specific types of charges or treatment options, and will probably contain provisions for deductible and / or coinsurance amounts, which are amounts the insured person must contribute out-of-pocket toward the cost of care. When used in a generic sense, the terms "health coverage" and "health insurance" typically refer to coverage under a major medical policy.
  
  
• Short-term major medical. Provides comparable benefits to standard major medical coverage, but for a policy period of generally less than one year. Short-term major medical policies may be non renewable or have restrictions on the number of times they can be renewed. These policies are most often purchased by individuals who lose their major medical policy for some reason in order to maintain coverage until a longer-term health plan may be purchased again.
  
  
• Basic hospital. A limited benefit health policy that provides benefits for room and board and miscellaneous hospital expenses. Such a policy generally does not cover expenses related to emergency room care, surgery, out patient treatment, or non-hospital related health services
  
  
• Basic hospital medical-surgical. Provides the same coverage as a basic hospital policy plus a benefit for emergency room care and surgery.
  
  
• Accident only. Provides coverage for injury from an accident only and excludes sickness. Benefits may be paid for death, disability, dismemberment, or hospital and medical expenses.
  
  
• Disability income protection. Also sometimes called loss of time insurance, the coverage provides periodic payments to replace income actually or presumptively lost when the insured is unable to work as a result of sickness or injury.
  
  

In general, individual policies cost more, and may cover fewer conditions, than membership in an employer sponsored plan or other group coverage. Group plans achieve lower rates by spreading the risk of claims over a greater number of people. Add the fact that employers often contribute 50 percent or more toward worker´s plan costs, and the price of an individual policy can seem even more expensive by comparison. Purchasing coverage individually has one significant advantage, however; Group coverage tends to be "one size fits all" for all group members. By shopping carefully and negotiating with carriers, the individual purchasers can obtain a policy that´s extremely well suited to their particular coverage needs.

Before purchasing any individual health plan, it is important to verify that the carrier and agent are licensed. Verifying that the carrier is licensed protects you against fraud. In addition, a state guaranty association will pay some or all of the claims of a licensed carrier should it become insolvent. If you buy from an unlicensed entity, you may have to pay the costs of any claims yourself. For many health care services, this cost could be significant.

To verify an agent and company´s licensing status, use the Agent Look-Up feature or view the company profiles on our website.

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