Health insurance is a topic that has been in debate for decades. There were few options when it came to coverage and even fewer providers in the past. However, the industry has grown exponentially, with many types of health insurance available in most states.
The best way to understand which type of healthcare plan is right for you is by understanding each one’s benefits and limitations to make an informed decision on what will work best for your needs.
This article will break down eight of the most popular types of health insurance plans so that you can be better prepared when shopping around for new coverage or when deciding whether to switch from your current insurer.
Short-term Disability Insurance Plans (STDs)
Short-term insurance acts as a safety net in situations where you might need temporary coverage, such as leaving your job or preexisting conditions.
Short-term insurance plans are generally more affordable than most other types of health insurance since these policies do not come with many of the benefits they provide.
While short-term STD plans can save you money each month which you could then use to pay for things like your deductible or co-pays while you are off work, it is crucial to consider that STDs do not generally pay for any expenses outside of the listed benefits.
Pregnancy Insurance Plans
Pregnancy insurance plans are similar to short-term health plans in that they will provide coverage during a specific time frame. Still, the benefits of pregnancy insurance plans include prenatal care and delivery.
Pregnancy insurance generally costs more than an STD plan, but it can help offset the expenses of giving birth and raising a child. However, these policies do not pay for any abortion or infertility treatments.
Dental Insurance Coverage
Dental insurance is very different from individual dental plans. You can purchase it either as a plan on its own or as additional coverage to add to your health insurance.
Individual dental or orthodontic coverage usually comes with several benefit tiers, which provide varying levels of coverage based on the cost of your procedure.
Basic dental insurance can cover minor treatments such as teeth cleaning, extraction, and routine checkups. On the other hand, special coverage is necessary for treatments such as dental implants, crowns, whitening, and braces.
Vision Insurance Coverage
Like dental insurance, vision insurance is also available as a stand-alone plan or in addition to individual health plans.
These types of policies cover yearly eye exams for their insured members. The latter can then choose from several options for eyeglasses, including basic single-tone lenses and higher-end multi-focal lenses.
The benefits of vision insurance include corrective lenses and discounts on glasses and contacts. Furthermore, many vision plans do not require co-pays or deductibles but instead only expect the insured member to pay their portion determined by an annual fee plan.
Individual Health Insurance Plans
Individual health insurance plans are the most popular type of plan since they offer a wide variety of benefits at various costs.
Employers will often provide their employees with the option to select a health policy on a preferred provider organization (PPO) or a health maintenance organization (HMO).
PPOs typically charge higher premiums but allow their members to visit medical providers outside their network. On the other hand, HMOs will only cover those medical providers that are part of its network, resulting in lower premiums as a trade-off.
Individual health insurance plans require an annual deductible, which you must pay for your healthcare services before your insurer starts reimbursing you for your expenses.
Life insurance provides coverage to help loved one’s pay off their expenses if something unexpected happens while you are insured.
The benefits of life insurance vary depending on the type and amount of coverage available in the policy. But typically, life insurance policies will compensate your beneficiaries with a lump sum of money after an initial waiting period that usually ranges from three months to five years.
Additionally, life insurance policies are available as either term or whole life plans, with the latter being more expensive and having more considerable benefits. Total life insurance provides coverage for your entire life, while a term plan only offers a range for the insured amount of time, typically 10, 20, or 30 years.
The different types of health insurance can be beneficial to know about to understand which one is right for your needs. The above are all available options that can provide different types of coverage. It is essential to research each policy and its benefits to find the one that best suits your needs.