Factors to consider while purchasing insurance

When purchasing your own insurance coverage, you should consider many factors.

* The reliability of the insurance company. Does it treat people fairly? Does it pay claims promptly? Does it have staff to answer your questions and resolve problems?
* Deductible amount. Most insurance policies require you to cover part of your health expenses yourself (your part is called the "deductible"), before the company pays anything. Under some plans the deductible is annual, and you pay only once each year if you use the insurance. Under other plans, you pay the deductible every time you have an illness or injury. In choosing insurance, you should think carefully about how much you could afford to pay out of your own pocket each time you are sick or injured and weight the deductible against the premium before you decide.
* Co-insurance or copayment. Usually, even after you have paid the deductible, an insurance plan pays only a percentage of your medical expenses. The plan might pay 80 percent, for example; the remaining 20 percent, for which you are responsible, is called the coinsurance or copayment. For example, if you are injured and incurred $3,000 in medical expenses, a plan with a $500 deductible and 20 percent copayment would cover $2,000 (80 percent of $2,500).
* Fixed benefits or specific limits. Some policies state specific dollar limits on what they will pay for particular services. Other policies pay "usual" or "reasonable and customary" charges, which means the insurer pays what is usually charged in the local area. Be very careful in evaluating policies with specific dollar limits; for serious illnesses, the limit might be far too low and you might have large medical bills not covered by your insurance.
* Lifetime/per-occurrence maximums. Many insurance policies limit the amount they will pay for any single individual's medical bills or for any specific illness or injury. Exchange visitors must have insurance with a maximum of no lower than $50,000 for each specific illness or injury, which may be enough for most conditions. Major illnesses, however, can cost several times that amount.
* Benefit period. Some insurance policies limit the amount of time they will go on paying for each illness or injury. In that case, after the benefit period for a condition has expired, you must pay the full cost of continuing treatment of the illness, even if you are still insured by the company. A plan with a long benefit period provides the best coverage.
* Plan Exclusions. Most insurance policies exclude coverage for certain conditions. The J regulations require that if a particular activity is a part of your exchange visitor program, your insurance must cover injuries resulting from your participation in that activity. Read the list of exclusions carefully so that you understand exactly what is not covered by the plan.
* Pre-existing Conditions. Many insurance policies do not cover pre-existing conditions. If you arrive with a condition that will need medical attention, verify the pre-existing aspect of the plan that you are reviewing.