Individual medical insurance is one of the most important forms of coverage you can obtain to protect yourself, your family, and your assets. Having adequate medical coverage ensures any future medical needs can be met without medical bills causing financial difficulty. Below we’ll review what individual medical insurance covers, discuss how it works with life insurance and commercial liability insurance, and highlight important differences between these options.
What Is Individual Medical Insurance?
Individual medical insurance is designed to help you pay for medical bills and other health-related expenses. Several choices exist, from plans that only cover catastrophic injuries to more comprehensive options with extensive coverage for medication and preventive health services. If you opt for a high-deductable plan that protects against catastrophic events, be prepared to save up.
The IRS defines high-deductible plans as those with deductibles starting at $1,400 and out-of-pocket expenses capped at $7,000 per individual. Keep in mind that individual medical insurance is different from the coverage you can obtain via an employer. Although, many of the same companies offer employer-based medical plans and private medical coverage. When you’re researching options online, make sure you’re evaluating the appropriate plan.
I Have Life Insurance: Do I Need Individual Medical Insurance Too?
The short answer to the question is, “Yes.” Life policies provide money to those left behind in the event of your death. It’s to ensure your family has enough money to pay off outstanding debts. Since there are no limits on the way you can use these payments, many families use the money to cover expenses such as tuition and mortgage payments. Individual medical insurance, on the other hand, only covers medical bills and related expenses.
Reimbursement most often goes directly to the physician who provided the service instead of to you or a family member. Although, most insurance companies will re-pay you for some out-of-pocket medical expenses you initially pay for yourself. While a life policy payout can be used to pay for medical bills, doing so will most likely drastically decrease the money your family has to take care of other needs.
Does Commercial Liability Insurance Cover Medical Bills?
No. It protects businesses and business owners if a patron is injured or you accidentally damage a client’s property. While there’s a ton of variation out there, most of these plans will reimburse a third party for an injury obtained at your place of business and pay if you cause any damage while providing a service. However, they are not designed to pay for a business owner’s personal medical expenses or those of that individual’s family.
Individual medical insurance is one of the most important products you can purchase to protect your financial future. It’s a great way to ensure you won’t have to deal with the economic fallout from unexpected medical expenses. Due to the variety of available policies, speaking with an experienced broker is the best way to precisely determine and meet your exact insurance needs and ensure you obtain the right coverage at a great price.