Kids health insurance is not like regular health insurance where the premiums paid to your insurer are based on your gross income. These policies are usually customized to fit your child’s needs and profile. There are four basic types of kids health insurance catastrophic, preferred, pay as you go, and managed care. Each type has different premiums, deductibles, and restrictions. Here are some of the differences between these four policies.
Catastrophic health insurance policies provide cover for major illnesses. They are ideal for people who have a history of major illness or have become very ill and need coverage for high costs. The policy will usually have a high premium level and be limited to major illnesses. In addition, there may be an overall spending limit on the policy.
Preferred health insurance policies let you select a variety of benefits and premiums. You can tailor them to your specific needs and budget. A preferred policy may cover the entire cost of medical bills after a specified period of time (such as in the case of catastrophic) or the premium level will be higher for individuals and family like you. You can pay the entire amount annually or in monthly installments.
Pay as you go plans and standard health insurance are similar. The only difference between the two is the payment options. Pay as you go plans allow you to choose a certain amount of money per month that you spend on premiums. If you spend more than this amount, you will be charged a fee for being over your spending limit. A standard plan will always require you to pay a minimum amount towards any medical bill.
In order to find the best option for your child, take the age of your child into account. If your child is younger than 19, he or she likely would not qualify for some of the high-risk policies. For example, they might require a higher co-pay or deductible for the same procedure. Older kids would benefit from taking their gross income into consideration when choosing a policy. Even if they already have coverage under their parent’s insurance policy, it might not be enough to provide them with the coverage they need.
When you consider the overall costs over the years, you might be surprised to learn that the best option is the one that is right for you and your family like the most. Take your kids’ overall needs into consideration. Also take their age, their health, and their general living situation into account. Then compare the prices of a variety of plans and choose one with the best benefits and prices. You can use the kids health insurance quote tool for this purpose as well.