Medical insurance plans for family are very important. You should have the right coverage for your family in case of any emergencies. This way, you will be assured that your family will get the needed treatment for a long time and will stay healthy during this time.
Usually, there are two types of medical insurance plans for the family: the fixed and the variable. Here are some advantages and disadvantages of each type of policy.
Fixed plans are easy to understand, can be applied directly to one’s budget, and provide regular payments. The fixed plans have a definite payment for each month or year. This is a good option if you want a monthly payment but cannot afford an expensive plan.
In the event of accidents, illness, and other unforeseeable circumstances, a low cost monthly premium will not cover all the expenses. This is where the variable plans come in. A variable plan allows people to choose their health care providers.
As the name suggests, variable plans allow people to choose which costs will be covered. In the event of an emergency, you can opt for a higher deductible and still save money. This way, you will be protected from high costs, while still being able to save money in the event of an emergency.
One of the advantages of the variable plans is that it is easy to understand. Usually, the monthly installments of the plan will be made up by an employer. In the event of a medical emergency, the employee can use the funds that he or she had saved to pay for the medical bills.
Another advantage of the variable plan is that it allows the employer to set up his or her own limits. Since most companies offer variable plans, this is an advantage. Also, the company may have an option to increase the deductible.
However, there are some disadvantages of the variable plans. For instance, some companies raise their deductibles if the health care costs of the employees are extremely high. Even if the employer sets up a fixed plan, the employee may be eligible for another plan that has a lower deductible and a higher premium.
A disadvantage of the fixed plans is that if you do not renew your policy, you have to pay the entire deductible. This means that you will be paying for all of the expenses for a very long time. With a variable plan, you can change your provider whenever you want.
Another disadvantage of the fixed plans is that they charge a lot more than the variable plans. This is because of the fixed payment system. On the other hand, the variable plans have fixed monthly payments for a fixed period of time, making them a lot cheaper than the fixed plans.
The fixed plans include all of the extras that can be added to them, such as annual checkups, vision, dental, emergency transportation, and other additional benefits. These extras will usually be included in the fixed plans. Variable plans on the other hand do not offer these extras.
There are many advantages and disadvantages to each of the insurance plan for the family. It is up to you to decide which of the two you prefer.