When faced with financial belt-tightening, many people decide to forego some necessities to ease the financial pressure. Insurance, unfortunately, is one common necessity that people drop from their monthly expenses when their budgets get tight. Many justify this decision by citing their excellent health, or the minimal chance that they'll require major coverage before their financial situation gets better.
Unfortunately, it's impossible to know when or if you'll need insurance coverage. Regardless of your current health, accidents, injuries or sudden illnesses can happen; if you do not have insurance, or your coverage is insufficient, the impact can be devastating. You could find yourself facing mounting medical expenses that you can't pay, or worse, could be faced with the inability to seek proper medical treatment when you need it. For single professionals and large families, insurance is one expense that should not be regarded as optional.
The good news is, even when you're working with a tight budget, there are ways to make insurance more affordable and a better investment. A little bit of research and a few smart decisions could help you obtain comprehensive coverage without a hefty insurance premium.
Do Your Homework
When it's time to look for insurance quotes, one of the best steps you can take is to find an insurance agent that has relationships with several leading insurers. Your agent can help you review each quote, not just for affordability but with regard to the benefits of each package and whether it meets your needs.
Identify Your Insurance Needs Carefully
There are two common mistakes in choosing insurance coverage: buying too little, and buying too much. Your package should adequately cover all of your needs, but should dispense with any unnecessary options that don't suit your situation. If you're uncertain about what features you need in a policy, talk with a knowledgeable insurance agent. He or she can help you decide which features are critical, and which are unnecessary expenses. This can greatly reduce your costs in premiums as well as in potential medical expenses.
Be Forthright
It can be tempting to leave out a few seemingly unimportant facts when filling out your insurance application, but the few dollars it saves you in premiums could have serious financial repercussions down the road. While a few lifestyle factors or medical conditions could result in somewhat higher premiums, it's far preferable to the costs that could be incurred by lost or reduced coverage. If you are afraid that certain aspects of your situation may result in higher premiums, speak with your insurance broker. They might be able to recommend specific companies or particular packages that suit your situation without costing a lot more money.
Look at All the Facts
If you are reviewing multiple quotes, it might seem sensible to just choose the cheapest one, but cheaper is not always better. Consider the details of each quote and weigh them against the cost of premiums. Some plans may feature lower deductibles for slightly higher premiums, representing a bigger savings in the long run. Some policies may cost more initially, but could have more extensive benefits such as smaller copayments, greater coverage limits, or more desirable add ons. If a package is technically less expensive, but leaves you at risk of being unprotected in the event of a medical emergency, chances are it will end up costing you much more than you would save. It can be challenging to compare policies from several different providers, as quotes are rarely identical; the advice of a knowledgeable insurance broker is invaluable in figuring out which policies offer the best overall value.

Which Insurance Should You Get?
From the moment you begin looking into your insurance options, you'll realize there are many things to consider. One of the key choices is which type of insurance you need. There are two main types of insurance: managed care and indemnity. Indemnity tendsd to be more flexible, giving you the ability to get medical care from the providers and medical facilities of your choosing. However, this freedom comes at a cost in the form of higher premiums and out of pocket payments.
Conversely, managed care plans generally restrict you to a preffered network of health care professionals and facilities. You won't have as much freedom in choosing where or from whom you receive your treatment, but you may also have access to benefits such as low (or no) deductibles, smaller copayments, and lower premiums. It's important to note that managed care plans come in two basic flavors HMO and PPO. While HMO plans often feature lower copayments, the coverage tends to be more expensive overall, and the guidelines governing the plan are often quite restrictive. PPO plans take more of a blended approach by requiring member providers to agree to a specific fee schedule regardless of the actual costs of the service you receive, under a PPO plan you would only have to pay deductibles and/or coinsurance based on the negotiated fee.

Which plan is right for you? As with any insurance decision, much depends on your particular situation. There are many factors to think about when deciding between these two types of health care plans.
Additionally, there are some mixed options that combine aspects of both managed care and indemnity plans, giving you a bit more flexibility and increased affordability. If you need help in determining which type of coverage is best for you, talk with an experienced insurance broker who can help you analyze your situation and help you make an informed choice.
Insurance needs are vastly different from one person to the next. Whether you need extensive coverage for your family, or simply need basic coverage for yourself, making the right choices in selecting your insurer can save you money and ensure that you have access to quality health care when you need it. Insurance should not be seen as an optional necessity but should be considered a critical part of taking care of yourself and your family.