What types of health-related insurance should I
When buying health insurance, it's important to
remember that you want to purchase the broadest coverage possible. A
good, broad policy will cover just about every medical problem you
encounter, regardless of how you get it or where. As a result, you
can usually avoid "narrow" insurance policies that will pay
only under unusual circumstances. According to Net Worth: Creating
and Maximizing Wealth with the Internet (Jamsa Press, Las Vegas),
here are some health-related policies you can probably live without:
One-disease insurance. Once you have broad coverage
for every major health risk, any other coverage for a specific
disease is redundant and a waste of money.
Accident insurance. These policies pay specific
medical expenses resulting from an accident, rather than expenses
resulting from illness. Again, this is redundant coverage because a
standard health policy should cover health expenses resulting from
either accidents or illnesses.
Health policies pitched by celebrities on TV, with
premiums that appear to be unusually low. These policies usually have
extremely long waiting periods before they cover any pre-existing
conditions -- far longer than the waiting periods required by
underwriters who don't have to pay for expensive advertisements and
Policies sold through unsolicited mail that offer
spectacularly low rates. Many of these policies also have unusually
long waiting periods for pre-existing conditions.
Student health insurance. Chances are, your student is
already covered under your family health policy until he or she is
18, or for as long as the student stays in school. Check your policy
and call your agent.
Most indemnity policies. They pay you a flat rate,
sometimes a mere $50, for every day you spend in the hospital. That's
not very helpful, considering that the average daily rate at many
hospitals now tops $500.