What Should Be Considered When Purchasing Insurance Coverage?


Quick Answer

It is important to consider the premium costs, monthly deductibles and specific coverage options of any type of insurance plan before purchasing. Also take into account any pre-existing conditions for medical insurance, the types of accidents covered for vehicle insurance and the renewal policies for life insurance.

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Full Answer

When signing up for health insurance offered by an employer, the first thing to consider is the monthly deductible rate. Group plans often allow employees to obtain insurance coverage at no additional cost, but in some cases there are different plans with varying levels of coverage and cost. Make sure to look at the specific details of each plan before making a decision on monthly premium cost alone.

One major consideration for any health insurance plan is the cost related to any pre-existing conditions. For example, if an individual already takes medication for asthma, he should check to see if that specific medication is covered by the plans in consideration. Many plans only cover medication from certain manufacturers, which means that it may become necessary to change medications or pay for it out of pocket.

For other types of insurance, compare the monthly up-front cost to the potential cost in an emergency or accident to determine if the price is worth the value.

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