Catastrophic insurance

It is extremely important to have some form of health insurance coverage in place, and typically at the most affordable price possible. The least expensive of most health insurance policies is Catastrophic Insurance. As the name suggests, benefits will only be paid in the case of a catastrophe. Generally this would mean coverage for surgery, hospital stays, intensive care or essential laboratory tests and diagnostic X-rays. Often the older you are the more expensive health insurance can be. This has led many individuals to take out catastrophic insurance in the years prior to their retirement to cover any serious health issues such as heart attacks, strokes, cancer or any other serious illness.

Unfortunately this type of policy will not cover routine doctor’s visits and other specific health treatments. The cost of these must be met from your own pocket. Some may argue that the overall cost of a full and comprehensive health insurance policy will save you money in the long run. However, Catastrophic Insurance is usually used by those who may be struggling financially or on an extremely tight budget. Pre-existing medical conditions such as AIDS, diabetes, heart disease or multiple sclerosis will not be covered by this form of insurance policy.

The premiums for catastrophic insurance are far lower than that of a regular health insurance policy. Whereas you may pay a few hundred dollars a month for a full insurance plan, Catastrophic health insurance may only cost in the region of $20 per month. This is mainly due to their extremely high deductibles and the fact that the cost of anything that is not considered a catastrophe or serious illness must be met by you. However, should you require the benefits from this kind of policy they can often provide coverage well in excess of $1 million. It is important that you choose a specific plan that will serve your individual needs. This will include the level of deductible and the overall level of benefit you require.

Catastrophic Insurance has often been used to cover the expense of a long stay in intensive care or mother’s who suffer unexpected complications during pregnancy. There are even a number of employers who do not offer any other form of health insurance package to their employees, so they opt to provide Catastrophic Insurance. It is also advisable that if your employer does not offer you any form of health insurance at all and money is an issue, you should take this type of policy just to offer you peace of mind should the unthinkable ever happen.

Catastrophic Insurance will cover you for an immediate hospital visit, any surgery that is required, a stay in the intensive care unit and lab test to determine exactly what your medical condition and requirements are. However, should regular doctor’s visits or long term treatment be required following a diagnosis, this insurance policy will be of little use to you. You can expect deductibles to be in the $1000 to $2000 range and you will need to pay for medical services until you reach this limit. It is also very important that you do not confuse this kind of insurance for something it is not. Should you suffer an ongoing chronic condition such as diabetes or kidney dialysis, then Catastrophic Insurance will not provide any coverage for your ongoing needs.

There are two types of Catastrophic Insurance policy you can choose from, namely, a comprehensive or supplemental plan. A comprehensive plan can be compared to more traditional forms of health insurance. Although you will have to pay a very high deductible, a comprehensive plan can cover you for emergency services such as the use of an ambulance. However, a supplemental plan must be treated as exactly that – it should act as a supplement to your other health insurance policies. A supplemental plan will typically cover the use of medical appliances and the need for nursing or psychiatric care. So as you may have guessed, this sort of insurance plan is not suited to everybody. You should take some time to figure out whether this is something that you really need or whether you should definitely have a plan in place because you have no other form of health insurance.

Last updated on Aug 3rd, 2010 and filed under Health Insurance. Both comments and pings are currently closed.

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