Health Insurance— How Much Do You Need?

If you can afford it, get major medical coverage. It provides protection against the bills of serious and prolonged illness, and offers broader coverage than your basic plan.

Your most urgent health insurance need is for basic medical protection for each member of your family. This protection provides benefits for hospital care, including daily room and board, routine nursing care and minor medical supplies. It covers costs for a portion of most surgical procedures and doctors' visits in the hospital, as well as some other services such as laboratory tests and x-rays, anesthesia and use of the operating room. Some outpatient care may be included in this policy, too. If you are in your child bearing years, you need a policy that will cover routine costs for delivery of a child and prenatal and postnatal care.

If you can afford it, get major medical coverage. It provides protection against the bills of serious and prolonged illness, and offers broader coverage than your basic plan.

A catastrophic policy is the third level of protection. It is the most expensive and provides the most benefits. Most families of moderate means have other uses for the money needed for these high premiums. Avoid policies which cover only one or a few major illnesses, such as cancer.

If your employer provides a good medical insurance policy, you may not need a second policy—especially if the company policy includes a major medical clause.

If your company policy is a group policy and you buy another group policy, the two companies will coordinate benefits so that more of the costs will be reimbursed. But you won't get more than the total medical charges, and you may learn you have paid needlessly for a second policy.

Group policies won't coordinate benefits with individual policies, and since you pay a lot more for individual policies, you might not come out ahead.

A disability income protection plan is desirable for major breadwinners in your family. Before considering a policy of this type, determine the sick leave policies of your employer and other alternatives for interim income.

Financial advisors say you should have from three to six months income in savings. This sum could help your family during your serious illness or accident. If you are injured on the job, you may receive income from Workmen's Compensation.

Retired persons should have a good health insurance policy. If you are on Social Security, sign up for Parts A and B of Medicare. This will take care of most of your medical care and hospitalization. But, there are gaps in Medicare, so you need an additional policy designed to cover these gaps. Some organizations offer such policies at group rates, and you can get similar policies from most health insurance companies. Check them carefully.

If you don't qualify for Social Security, or if you retire before you are eligible for Medicare, shop around for a good medical insurance policy. Try to get a group plan. As soon as you are eligible, switch to Medicare coverage.

For more information on insurance, contact your local county Extension office.