How to Choose the Right Insurance Coverage for You

Insurance can be a complex topic, and it can feel overwhelming. It’s essential to understand how each coverage type works before deciding. To help you determine what plan is best for your family, start by doing five quick checks. These include:

What You Need

Whether you’re getting ready to shop for your first policy or are renewing an existing one, there are some critical questions that you should ask yourself to make sure the coverage meets your needs. Rating agencies, insurance agents, and referrals from family and friends are all great resources for information, but remember to do a little bit of your research.

Specifically, you should consider how often you and your family see the doctor or go to urgent care, what prescriptions they take, and how much you spend on those medications. Then, you can compare those costs against your premium and the amount you must pay to reach your deductible. If you’re generally healthy and don’t anticipate many medical expenses, a high-deductible health plan (HDHP) might be the right option. However, you’ll need to ensure you have enough money in emergency funds or health savings accounts to cover those expenses if required.

What You Can Afford

When purchasing health insurance, you must balance your needs against what you can afford. Many factors go into choosing the right coverage, including your medical history and future financial plans. Consider the monthly premiums and any out-of-pocket costs you may encounter. It should be based on your income, current savings, and projected financial situation. It is also essential to consider how much you can afford to pay in case of a claim. Consider whether you can afford to visit doctors in your network. Some health insurance plans have tiered networks and only cover you if you see providers in the top tier. Others allow you to go to doctors outside the network but at a higher rate. You should also review each plan’s drug lists to ensure they cover your needed prescriptions. If not, choose another plan from Mountain Insurance.

What Options Are Available to You

Whether you need life, health, long-term disability, or auto insurance, your circumstances and budget will determine your best options. Experts recommend getting multiple rate quotes and comparing coverage. If you get more than one form of coverage, many insurance providers may give you discounts. Before you finalize a plan, consider the type of doctors and specialists in the network. You will also want to eliminate plans with limited or no physician choices in your area. A more extensive provider network plan will likely have lower out-of-pocket costs and deductibles. You will also need to understand how each type of plan works and its limitations. For example, a Health Maintenance Organization has a strict network of providers; you must see only the doctors within that network to receive coverage. In contrast, Preferred Provider Organizations have a broader choice of physicians and do not require referrals to see specialists.

Who Will Be Covered

As you compare plans, note what each covers for you and your family. You can find plan summaries for each available health insurance option in your state’s marketplace. This information will help you narrow your options based on premiums, out-of-pocket costs, and which plans have your preferred medical providers in their network. Many plans also have tiered networks, with lower costs if you stick with doctors in the top tier. You should also note whether or not the health insurance plan you choose requires a pre-authorization for specific services and how often that happens. When you buy insurance, the provider calculates your risk based on the likelihood of having to pay out and then charges a premium that reflects that. Choosing the right insurance coverage for you can be challenging, but these tips should give you the tools to make the right decision.