Low Cost Insurance

Low Cost Insurance

Everyone wants low cost insurance or cheap insurance for everything in the life, especially and perhaps primarily health insurance.

Health care costs for any individual without any type of insurance can be astronomical, and some type of financial protection is often crucial but expensive.

The idea of cost and whether it is cheap or expensive is relative to people and their income or wealth, but what can be ascertained is what the costs and benefits of a health insurance policy are, and whether or not they represent value for money.

Low cost insurance is normally associated either with an insurance company that is happy to take your money but will then stop balking at paying out for any insurance claim.

This happens a lot, and can be frustrating for most people. As far as health care is concerned it is especially dangerous because denial of coverage, which is the rejection of a claim effectively, could be a life or death situation.

Low cost insurance can also relate to insurance companies who are happy to take your money, but tend to put seven restrictions or conditions on policy that becomes almost on workable to find out what you are or are not covered for.

Low Cost Insurance

Low cost insurance is also often offered to individuals for the first year or two years after which it is hiked up to a significantly higher level than would have been the case otherwise.

The intent is to hook people into a particular insurance company, knowing that although it is technically possible to change health insurance policies every year, it is a hassle and people do not like doing it.

People tend to feel safer with a degree of continuity for the health insurance, assuming that the insurance company will respect their loyalty in the event of a difficult or contentious claim.

Health insurance reform in the United States, most commonly referred to as Obamacare, has dealt with some of these issues, in ways that will at least force the insurance industry to be more transparent about both costs and benefits.

The introduction of health insurance exchanges but not necessarily mean low-cost insurance, but it does mean that health insurance plans will to an extent be more standardised than before, and that people will be able to compare health insurance plans on a like-for-like basis.

This at least means that it is possible to compare premiums against premiums, and premiums against deductibles, co-insurance and co-pay.