The advantages and disadvantages of health insurance plans

Health insurance is a risk management strategy that is important in terms of the coverage it provides for the insured for any surgery, hospitalization or medical expenses incurred but it is important to weigh the advantages and disadvantages of taking health insurance before choosing a policy.

An indemnity health insurance plan will reimburse you either partially or fully depending on the type of plan you have chosen. Alternately, an indemnity health insurance plan may also cover medical or hospitalization expense up to a certain maximum number of days.

Managed care plans give your access to doctors and medical care professionals who are part of a network and their consultation charges may be covered fully or partially under the terms of the policy.

Health insurance coverage provides you access to state of the art medical services at the lowest possible costs. A sound health insurance policy is good to have in the event of any unforeseen medical emergency so that you do not have to worry about raising money for such expenses out of your pocket. While health insurance plans may not contribute significantly to an investment plan, they are very useful as a risk management strategy for long term filial planning.

On the down side, a concern shared by many is that the annual premium costs of taking out a good health insurance policy can be very high, and may hence be out of reach of those who have a lesser amount that can be allotted for this purpose.

Also, the process of taking a health insurance policy can be quite complicated and often overwhelming in terms of legalese that needs to be deciphered and understood.

Some kinds of health insurance plans impose a limit on the number of permitted doctor visits or have very high deductibles. Another disadvantage to some kinds of health insurance plans is that the extent of coverage may be limited and so when it comes to very expensive medical interventions of specialist consults, you might have to pay from your pocket large sums of money over and above the insurance coverage available. You can look for health insurance quotes online and then compare the different plans to get the best pick.