Health Insurance: What Is It and Why Should You Get One?

As a young professional or someone who’s trying to start a family, one of your greatest concerns is preparing for the future. This involves saving enough money and investing. Once you have enough income streams, you can start building your and your family’s future by buying a house, car, and other necessities.

However, you should also think about protecting your assets from various unexpected expenses, such as medical costs. Nowadays, hospital and other medical bills can become too expensive that getting sick can cause you to drain your savings and even lose your high value possessions. To avoid this from happening, you should get a medical insurance plan.

Health or medical insurance is a type of contract between an individual and an insurance company. In this agreement, the insurance company is required to pay for a portion or all of a person’s medical costs in exchange for regular payments, also called premiums.

Health insurance, in particular, can be used to pay for the insured medical, surgical, dental, and prescription drug expenses, depending on the agreement between the two parties. Sometimes, the insurer is also responsible for reimbursing the expenses obtained by the insured from an illness or injury.

Insurance companies offer different kinds of health insurance plans. Some of the most common types that you may encounter are:

·         Health Maintenance Organization (HMO)

·         Preferred Provider Organization (PPO)

·         Point-of-Service (POS) Plan

·         High-Deductible Health Plan (HDHP)

This kind of medical insurance plan allows you to take advantage of various health services by providing you with access to a network of healthcare providers and facilities. Although you might be restricted by the choice of doctors and providers offered by your insurer, you will pay lower premiums compared to other types of health insurance plans.

With this type of medical insurance plan, you have a bit of freedom to make a list of the healthcare providers that you prefer. Meanwhile, you will still have access to a network of doctors and healthcare facilities offered by the insurance company.

However, if you decide to add out-of-network doctors to your plan, you have to pay higher premiums. That is why PPO is mostly chosen by individuals who need access to specific doctors who are not part of any insurance company’s network.

A POS plan has the features of HMO and PPO. This type of medical insurance plan provides you with different benefits based on whether you are going to a healthcare provider that is in or out of your insurer’s network.

The greatest benefit of POS is that you have more freedom to choose your healthcare provider than with an HMO. Additionally, if you decide to see an out-of-network doctor, you only need to file some paperwork to be reimbursed by your insurer.

HDHP is a type of health insurance plan that has become more popular over recent years. This medical insurance plan is mainly characterized by its higher deductibles and lower premiums.

If you have HDHP, you are entitled to open a health savings account (HSA), which you can use to pay for some of your medical expenses. The money you deposit to your HSA is also tax-free, so you can use it entirely to cover your medical costs.

how to choose health insurance for yourself and loved ones

Choosing a health insurance plan for yourself or your loved ones is a simple yet challenging task. Although you can now easily apply for one online, comparing different company policies can become overwhelming. After all, how can you directly compare them if they offer other things?

To make your search much more accessible, learning how to choose health insurance in the Philippines is a crucial step. Here are the factors you need to consider when choosing health insurance:

Before you set out to compare different health insurance plans, you first need to know what you’re looking for. List your non-negotiables regarding your policy, such as specific features or benefits. These requirements may vary depending on your priorities in life, including managing a preexisting medical condition, starting a family, or getting treatments.

The next thing you need to do is determine how much money you’re willing to spend on your health insurance. Doing so will help you narrow down your search. You’ll also have peace of mind knowing you can continue paying your premium because you’ve considered your financial capabilities before choosing a health insurance policy.

Learning how to choose health insurance involves scouring the internet or any other resources you may have for the best plans that meet your needs and budget. You can start with a quick Google search of the different medical insurance plans in the Philippines. You can also look at the websites or social media pages of well-known insurance companies in the country, such as Allianz PNB Life, and their offerings.

As you browse various policies, pay attention to the ones that meet your needs and fit your budget. Once you have a final list of candidates, look closely at their features and benefits.

Review each policy you've earmarked, consult the list of non-negotiables you created earlier. Then, narrow down your list as you go.

Now that you have a shorter list of health insurance plans that meet your requirements, it’s time to look at their prices. Remember the budget you’ve set while comparing prices to guarantee that you won’t spend more than you can for your health insurance policy.

It would be best if you also remembered to look at any out-of-pocket costs, such as co-pays, deductibles, and coinsurance, that may come with some medical insurance plans. Consider them and determine if the policy is still within your budget, even with the extra costs.

Make sure to read the fine print of the policies you’re considering. These details can tell you more about the health insurance plan's coverage, claim procedures, and waiting periods. Learning about this information before deciding can save you from a stressful experience and disappointment.

Another thing you need to do when choosing a health insurance plan is look into the company that offers it. The insurance company's reputation and track record are important things to consider to ensure that they are equipped to assist you whenever needed. To check the company's dependability, research its history and read customer reviews before you decide.

To ensure you get the quality care you need, it’s best to check the network of hospitals and healthcare providers covered by the policy. You should also see if the nearest hospital to you or your preferred one is included in the plan. The convenience this offers can make or break your experience with a health insurance policy.
Getting a health insurance plan allows you to live without worrying about costly medical expenses. Particularly, a medical insurance plan provides you with the following benefits:

As you grow older, you become more vulnerable to different lifestyle diseases, such as:

·         Obesity

·         Diabetes

·         Respiratory Problems

·         Heart Diseases

With a health insurance plan, you have the means to get tested regularly for these health problems. You won’t have to worry about paying for each medical test because most health insurance plans cover these procedures. You’ll also be at peace knowing your current health condition.

As the medical field advances and services improve, the cost for various treatments also rises. When you have a medical insurance plan, you don’t have to be anxious about how to pay for expensive medical procedures. Instead, you only need to think about your health insurance premium, which is considerably more affordable than medical costs.

Investing in a medical insurance plan allows you to prepare for unforeseen circumstances, which can otherwise drain your savings. With a health insurance policy, you can manage any unexpected medical expenses without taking money from your savings account. Therefore, you can focus on spending your savings on fulfilling your goals, such as buying a house and funding your child’s education.

When getting a health insurance plan, make sure to work with a reputable insurance company like Allianz PNB Life. We are dedicated to helping you achieve your aspirations in life and keeping you happy and healthy.

You can count on us to provide you with a medical insurance plan that suits your unique needs, no matter which stage in life you’re in. We offer exceptional health solutions so you can continue living life to the fullest. Reach out to us today for more information regarding our health insurance plans.