Pros and Cons of Private Health Insurance


Insurance cost is quite flexible and is determined by the range of risks a policy covers, the insurer and its credibility in compensating such risks, and, nowadays, the insured person. Securing an insurance policy can be done through one’s employer as corporate insurance, the auspices of the government, or personal effort with an insurance agent’s help. Today, several companies provide health insurance for their employees, especially those whose jobs entail a considerable degree of risks to health and body. Working for one of these companies can be a tremendous benefit, at least to one’s health risks.

Private Health Insurance

Often, the health insurance that these companies provide does not necessarily cover the immediate family members’ health risks. When people have been maimed or disabled or have already reached the age of 65, the government can compensate for the medical and hospital needs through Medicare or Medicaid. But what about health risks other than these? Sometimes, those who are self-employed or even employees who wish a wider coverage for their health insurance seek different options in addition to what they already have, which is also an added peace of mind.

Private health insurance is increasing in popularity because of the host of benefits it provides to the insurer. It’s something to consider for those with special health needs otherwise not covered by the employer or the government. Sometimes, their physicians are comfortable being treated and admitted to hospitals they find reliable and excellent in service. But the reach of health insurance from one’s company may not extend to these medical specialists, clinics, and hospitals. For people concerned about their family members’ well-being, this type of insurance is often open to indemnifying loved ones.

When considering the cost of private health insurance, it pays to know the factors in the insurance policy that dictates it. First is the premium, when the insurer must pay the provider at agreed-scheduled times. Usually, payment terms can be monthly, quarterly, bi-monthly, semester, or annual. A monthly payment scheme is an option for those wanting a higher premium but not having the amount to cover the initial bonus. This way, they enjoy better benefits and coverage but a seemingly small premium paid every month. Higher risks to health, such as age and known conditions, and including family members, can jack up the tip.

Other deductibles are also factors that affect the cost of private health insurance. This out-of-the-pocket expense can be paid outside of the premium annually so that specialists, hospitals, and other kinds of special clinics are included in the roaster of possible services that can be availed. This cost can also be paid on a case-to-case basis. If justifiable enough, additional health insurance policies can be co-paid by or co-insured with the company or the employer.