Individual Health Insurance
The 4 things everyone needs to know about individual health
insurance
1. Who buy individual health insurance plans?
Health insurance can be purchased on your own with an individual
health insurance policy or can be purchased with a group health
insurance policy with your employer. Employers purchase group
health insurance as one of the main benefits provided to employees.
If your employer offers health insurance, your main decision
will be whether you want to purchase health insurance for
yourself and or your dependents.
Individual health insurance policies are purchased by the
following types of people:
- Self-employed people
- Work for a small business
- Work for a business that does not provide group health
insurance
- Between jobs and/or are waiting for benefits to start
- Early retirees
2. Types of individual health insurance plans?
There are 2 main types of individual health insurance plans:
- Short term or temporary plan
- Permanent plan
Short-term or temporary health plans is a health plan that
can be purchased from 1-12 months. The policy can remain in
force up to 12 months and the policy will be cancelled at
the end of 12 months.
Permanent plan is a health plan that is designed for you
maintain for several years or until you reach age 65 or until
you are eligible for medicare.
3. Options available with individual health insurance
plans?
There are 4 main options:
- HMO (Health Maintenance Organization)
- PPO (Preferred Provider Organization)
- Major Medical
- HSA Health Savings Account
4. What is involved when applying for individual health
insurance?
Individual health insurance plans are subject to approval,
based upon a review of the applicant’s medical history.
The following decision can occur once an application has been
reviewed by the underwriting department:
- Approved as applied
- Approved with a pre-existing condition waiting period
- Approved with an exclusion for a temporary or permanent
time for a pre-existing condition
- Declined
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