Are The Savings from Cheap Health Insurance Worth It?
Buying medical coverage can be costly, but it’s essential in some places like the US and Dubai, where insurance is mandatory by law and medical bills can be extreme. But is opting for cheap health insurance really worth the risk?
There’s a lot to consider when it comes to the various types of health insurance. In this article, we will cover all the information you need to help you find the right health insurance plan to suit your needs, and most importantly, your budget.
Buying a Health Insurance Policy
When it comes to purchasing health insurance, your first thought should always be about your needs. Whether you’re looking for health insurance for yourself or your family, a plan is no good if it doesn’t provide the right coverage when you need it to.
Things to ask yourself when looking for health insurance include:
- Will pre-existing conditions be covered, and at what cost?
- What are the benefit limits, and will there be an excess, deductible, or co-pay?
- How easy is it to process claims, and how quickly can they be approved?
- Does the insurer only accept care from certain hospitals, health centers, or clinics, and how is payment settled?
- Is there direct billing, or must I pay out of pocket first?
All of the above should be well understood before you decide on a policy’s price tag. Like any product or service you can purchase, cheap health insurance may be less expensive because of how low the benefits are, how restrictive the coverage is, or the priority in which claims are processed.
As many insurers offer flexible and adaptable terms in their insurance products, a pricier plan may have some options that can make the cost more acceptable. This is particularly true in countries where insurers are more competitive and willing to offer better value for the products and services.
There are several health insurance companies in Dubai, UAE, and it’s a pretty good idea to carefully compare their health plans thoroughly before deciding on the final price to pay for coverage.
How to Effectively Adjust Your Premium Costs
Many insurers are open to being flexible with their policies so that you can work on getting the coverage you need for a premium you can accept. If a plan has the coverage you need but is out of your price range, options such as co-pays and deductibles are effective ways to manage premium costs.
- Deductibles – A set amount you can agree to pay for care, with the insurer covering the rest, if the claim is accepted. This reduces the risk to the insurer and can often reduce the premium.
- Co-pays – Instead of a set amount, you agree to pay a percentage of the cost of treatment.
- Excess – The insurer sets a maximum amount they will pay, and the insured agrees to cover the rest above that amount.
- Customize Your Plan – Look at reducing or removing things including the maternity, dental, and vision benefits of a full-coverage plan. These can be expensive, whereas plans with only inpatient and outpatient care will be cheaper.
- No Claims Bonus – Some insurers have a bonus discount applied after a certain amount of time without claims. You could also ask insurers when you shop around if there are rewards for staying fit and healthy.
- Active Rewards – Wearable devices like smartwatches track activity levels and health status. Insurers may reward policyholders with points for reaching certain goals, and points may be used for discounts on sporting gear or lower annual premiums
Why You Shouldn’t Just Pick The Cheapest Policy
Many things can happen if you buy a medical plan simply based on how cheap it is. A plan with a low premium often means there are gaps in your coverage. This could lead to unexpected medical bills setting you back financially more than what you saved on premiums.
Additionally, low-cost policies may exclude a great number of conditions, or provide low limits for them, such as coverage for cancer. In the worst-case scenario, a sudden cancer diagnosis can often render your cheaper health insurance policy relatively useless.
In cities like Dubai, where there is mandatory health insurance, it is important to be aware of what exactly is required to be covered. Going for a cheaper plan not issued in Dubai might mean it is not compliant with the local law. Ultimately, affecting your visa applications or renewal.
Let Pacific Prime Help You Find The Right Plan
If you need help securing the most suitable health insurance coverage, then your best option is to engage an insurance broker like Pacific Prime Dubai. Our team of experienced consultants is on hand to help you find the most suitable quote for your needs and budget.
Pacific Prime Dubai can deliver solutions for individuals, families, and groups, and has done so for over 25 years. Our expert advisors put you at the center of their decision-making and source the best plans from the top insurers locally and from around the world.
For a free quote or some helpful advice, contact the team at Pacific Prime Dubai today!
Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).
Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.
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