How to buy health insurance

When you're sick or injured is no time to find out what your plan really covers. An educated consumer is a smart consumer. Use this and other online sources to learn how to:

• find types of policies available to you;
• research insurance companies;
• check out an agent and/or local agency;
• research health plans available in your state;
• figure out what a policy won't pay for;
• determine how you'll be reimbursed for visits, prescriptions, and other medical services.

You might think that the above suggestions should be common sense, but a surprisingly large number of consumers don't know the answers to obvious questions. What you learn with a little research could save you big dollars, or at least give you the peace of mind that comes from truly understanding the coverage you've purchased.

Pay your premiums annually.

You can save money by paying your yearly premium in one lump sum. Check with your insurance agent about how much you could save. You can avoid a service fee and be eligible for a pre-payment discount.

Move to a higher deductible.

If your family has enjoyed good health for a number of years, you may want to switch to a higher deductible of $500 or $1000. You'll notice a significant reduction in premiums.

Don't buy policies that exclude pre-existing conditions.

If at all possible, avoid policies with any pre-existing conditions. If you can't locate one without any waiting period, at least get one with no more than a six-month period.

Think twice before purchasing "supplemental medical" insurance.

Many supplementary policies are not needed because the items they pay for may already be covered under your existing health insurance plan. Check to make sure that the limits for hospitalization and treatment on your main health policy seem high enough. If they don't, shop for another policy.

Enroll in a group plan.

Individual health insurance can be extremely costly for the self-employed. By joining a small-business association, you may have the opportunity to enroll in a group health insurance plan and save money through the power of larger numbers.

Buy health insurance online.

Use online health insurance quotes from a site that allows you to compare multiple companies and plans. You'll find a much larger selection than going through a single health insurance agent.

What you should do if you've already bought.

Review your policy every year.

Read the fine print to make sure your policy still matches the needs of your family. As the health care system continues to change, and your personal circumstances change, your health insurance policy should reflect today's needs and conditions.