When shopping for health insurance, many people do not fully understand all of the terminologies. There is a big issue with this because it can cause you to choose the wrong plan for you, cost you a lot more money in the long run, and more. To better understand health insurance terms, so you know exactly what you are getting, use these definitions from Farrell Insurance Associate, Inc. serving Lansdale, PA.
- Premium – The premium is the amount that you will have to pay every month for your insurance policy. This is usually the number that people look at first but it does not tell the whole story, and you should not use it on its own to make any decisions.
- Deductible – The deductible is the amount that you will have to pay for your health services out of pocket before your health insurance kicks in. For example, if you have a $1,000 deductible but your service cost is $400, you will pay the $400 and your insurance will not assist. You will want to choose a policy with a deductible that you can pay for out of pocket based on your income.
- Co-Pay – Co-pays are the amount that you will pay to see your doctor. This amount may or may not be included in your deductible equations. Additionally, the amount you pay for your co-pay is determined by your insurance. Before you purchase any policies, you will want to see what the co-pays are for specific services to ensure you can afford them.
Now that you know what specific terms within health insurance policies mean, you can better choose the best option for you and your family. For more information about health insurance policies or to find one right for your budget and needs, be sure to contact Farrell Insurance Associate Inc. serving Lansdale, PA today.