Authored by Kate Beswick in Insurance
Published on 09-01-2009
Health insurance is expensive. Because of this, everybody is constantly on the hunt for health insurance that will give them the most benefits at the very lowest cost. The challenge is that nobody wants to pay for insurance that they don’t need. But when you do need it, you definitely want to have a health insurance policy in place. No one wants to be placed in a bad situation and find themselves without help. If you want health insurance that will provide coverage for the very worst situations, and not have you paying high premiums in the meanwhile, catastrophic health insurance may be the best solution. Catastrophic health insurance provides coverage for just what it says – catastrophes.
Catastrophic health insurance is a type of health insurance that requires you to pay a fee every time you need a medical service. This fee is referred to as the premium. This means that each time you need to see the doctor, go to a medical clinic, get blood work, or go to the hospital you would need to pay for every visit. These premiums are not only present each time but they can also be quite costly. And they’re definitely more expensive than what you would find in other health insurance plans. However, in exchange for these high premiums, catastrophic health insurance offers very low monthly fees. This means that you will be paying a lower cost on your monthly insurance bills while spending more on premiums during your doctor’s visits.
While the premiums are quite high with catastrophic health insurance, there are benefits. One of those benefits is that you will always be covered in the event of a catastrophe. This means that when you find yourself in the worst situation, you will know that you will have insurance coverage in areas that other plans don’t offer. And even though the premiums may be high, you will still only be paying a fraction of the cost when faced with an extremely bad situation.
Catastrophic health insurance offers two different kinds of insurance. The first is conventional catastrophic health insurance. This type of plan works best for people who have no other health insurance coverage. This type of catastrophic health insurance is the most expensive but still offers coverage when you need it most. Supplemental catastrophic health insurance is another type that’s offered. This is definitely the cheaper option. But it will also only provide coverage in addition to that provided by the first health plan. This means that the first health insurance plan will be billed first before the catastrophic health plan is considered. It also means that the insurance holder will be paying for two different health insurance plans.
Because catastrophic health insurance premiums are so high, they will work well for some, while being a huge expense for others. Generally if you are a relatively healthy person and don’t need to see the doctor too often, catastrophic health insurance is your best option. This is because you will be paying much less in monthly fees but will be covered during a catastrophe. Those who often need to see the doctor or have procedures and tests performed will most likely benefit from saving on every trip and paying a higher monthly fee.