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 person who is the insured. Securing an insurance policy can be done through one’s employer as a 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 already, at least to one’s personal 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 other 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 those of the employer or the governments. Sometimes, their personal physicians are comfortable being treated and being admitted to hospitals they find reliable and excellent in service. But the reach of the health insurance from one’s company may not extend to these medical specialists, clinics, and hospitals. For people who are also concerned about their family members’ well-being, this type of insurance is often open to indemnify the loved ones.

When considering the cost of private health insurance, it pays to know something about the factors in the insurance policy that dictates it. First is the premium, which is when the insurer has to pay the insurance provider at agreed scheduled times. Usually, terms of payment can be monthly, quarterly, bi-monthly, semester, or annual. A monthly payment scheme is an option for those who want a higher premium but may not have the amount outright to cover the initial premium. 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 premium.

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 on an annual basis 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 it is justifiable enough, additional health insurance policies can be co-paid by or co-insured with the company or the employer.