Dos and Don'ts When Picking an Insurance Plan

Health insurance plans are a must-have. Healthcare costs are higher than ever; sending the average person into medical debt doesn't take much. Insurance protects you, ensuring you have access to all the care you need without paying out of pocket for everything.

That said, health insurance can be complex. There are countless plans available with varying prices and coverage levels. Choosing the right one can be daunting. Here are a few tips to help you select a plan that meets your needs.

Do Consider Your Needs

Always shop for insurance with a full understanding of your healthcare needs. Costs can vary dramatically, and a cheaper plan usually means less coverage. You can't see into the future, but you can use your health now to guide you in the right direction when shopping. Navigate healthcare with an HDHP! Learn all about HDHP plans and maximize your savings today. https://livelyme.com/guides/hdhp

For example, if you feel you'll need considerable healthcare, choose a plan offering more coverage. You'll have to pay higher premiums but have fewer out-of-pocket costs.

Conversely, someone who's relatively healthy may not need significant healthcare. Therefore, a high-deductible health plan (HDHP) might be worth considering.

Do Compare Options

Don't settle on the first policy that looks good. Compare plans and coverage. Move beyond premium costs and consider what plans cover to get the most bang for your buck.

Do Explore Savings

There are many ways to save on health insurance. Millions qualify for tax credits that can significantly lower your monthly premiums. Explore those options. It's free to apply for tax credits, and the assistance makes getting insurance much more affordable.

Consider your financial situation, too. If you have a good amount in savings, it might be worth buying an HDHP to open a health savings account. That could lower your monthly premiums while giving you another avenue to pay for medical expenses.

Don't Lie About Your Health

It's tempting, but don't lie about your health status or lifestyle. Many people avoid telling the truth in an attempt to lower their premiums. But if you need coverage, those lies could lead to claim rejections and even legal repercussions.

Don't Forget to Renew

Finally, renew your policy every year. Insurance plans typically last a year, so you'll have to renew or shop for a new policy to prevent a lapse in coverage.

Read a similar blog about HSA investment advice here at this page.