Avoiding Mistakes with Your Health Policy

How much should you be paying for health insurance, and what kind should you buy? Unless you can join a group plan through your company or professional association, you will have to pay yearly premiums of $700 to $1,265 if you are a single male, $1,150 to $2,645 if you are a single female, and from $2,875 to $5,750 for a family of four. Policies that cost much less may provide poor coverage. Avoid insurance promising to pay a set amount for each day in the hospital instead of a portion of total expenses. A policy that pays for a single disease is also a mistake; it won't cover you for most forms of costly illness.

The indispensable coverage for most people is a Blue Cross hospital policy plus a major medical policy. They are available from Blue Cross/Blue Shield and insurance companies. The policies make you pay a maximum of 20% of most expenses in addition to a certain deductible, but no more than $1,000 in any one year. And the best plans place no ceiling on benefits.