By Christopher Cervantes, RFP

If you are looking to have health insurance coverage, starting young and knowing your options are key to attaining it, and consequently a less stressful financial life.

The coronavirus pandemic has heightened our awareness of the importance of having this kind of insurance. People are afraid they might be hospitalized as their company closes, not to mention the ongoing health risks posed by the virus.

In fact, the Insurance Commission reported recently that health maintenance organizations (HMOs) posted a 203-percent growth in net profit to P4.53 billion in the first half of the year because of coronavirus-induced demand for coverage.

There are several options in securing health protection, and each has a number of unique features. Rushing and picking the wrong one can be costly. So let’s consider a few things in choosing the best plan for you and your family.

First of all, health insurance is a product that covers medical expenses. Like fire insurance that covers costs you might incur after your house catches fire, health insurance covers the costs when you get sick or injured. It can also cover preventive care, like doctors’ fees and medical diagnostics.

But we should remember that it doesn’t always cover 100 percent of the costs. Just like property insurance, health insurance is designed to share costs with you up to a certain point, called out-of-the-pocket limit. Once you reach it, you need to pay for the rest.

Most people with health coverage get it through their employers by enrolling in a group health insurance plan. If you are employed, it is best to ask your human resources department if you and your family are qualified. But suppose you are not or your company does not provide it. In that case, it’s essential to buy health insurance as soon as possible, either through the one provided by a life insurance company or HMO.

An HMO is a company whose organizational structure allows them to provide insurance for its members through a specific health care provider network. As a member, you need to pay your membership fee every year, depending on your preferred mode of payment. HMOs do not cover any out-of-network health care costs, so you also need to have some plan that would address the gap.

To do this, you must also have critical illness insurance. This is a type of insurance that you can get from a life insurance company that would help you pay for the treatment of expensive illnesses that would undermine your ability to earn for many years. For example, cancer, stroke, and kidney failure are just some of the major ailments typically under illnesses covered by this kind of insurance. Critical illness insurance would give you a lump-sum cash payment. Combined with your HMO, that would allow you to be admitted to a hospital even without cash or whatever out-of-the-pocket expense due to critical illness.

Another product you may want to consider is the variable universal life, or VUL, health insurance. The good thing about this product is that you may choose to include “riders,” one of which is early-stage critical illness that would allow you to receive a lump-sum payment, even at the illness’ early stage. Since you are paying for insurance and investment simultaneously, this will also serve as your health fund in the future, which is potentially higher than the amount of the coverage you initially paid for.

Before getting any plan, make sure this would fit your needs. If you have preferred doctors and want to keep seeing them, make sure they are in the provider directories of the HMO you are considering buying coverage from. Better yet, ask your doctors if they are part of a particular HMO plan. If you don’t have a preferred doctor, make sure the hospital near you is on the HMO’s accredited hospital list.

For some, understanding health insurance coverage options are confusing, but this should not stop you from taking one. Ensuring your access to medical help and regular care will keep you and your loved ones healthy, both physically and financially.