Catastrophic Health Insurance – Low cost insurance

Most of the uninsured young adults cite the high costs of premiums as a deterrent for taking up health insurance. They are probably right too, if you consider their relative good health and age into consideration. The only reason that they might have to take up a health insurance plan is to cover up for unexpected medical emergencies but their main deterrent remains the high cost of monthly premiums.

The catastrophic health insurance plans provide an alternative to people who tend to think this way. This plan comes with very low monthly premiums and high deductibles. If you are healthy and your need to consult a doctor or take medication is rare, you probably do not mind paying for those out of your own pocket. The catastrophic health insurance cover allows you to do exactly that. It lets you pay for the routine check ups and common medications till you reach your predefined limit of deductibles.  If you undergo a situation which demands a high cost over and above your deductibles, the plan takes over and pays 100% of the remaining cost.  The insured not only gets the security of a complete coverage above his deductibles, he also is benefitted by the low premiums.


Self employed people and people who other wise are ineligible for company provided health insurance can opt for the catastrophic health insurance plans. Some elderly people also opt for this plan as long as their health is in good shape. The premiums are low enough to be fit into the budgets and provide enough freedom to the insured to choose the types of treatments that they deem fit. Things that one must take care before buying this plan are: the total cost of the plan, ability to pay the deductibles if the need arises, adequate coverage for the insured, catastrophic health insurance policy guidelines and health status of the insured.

The policy documents clearly indicate the coverage terms and in most cases, the pre existing illnesses are not covered. The high deductibles also can be a big problem during the time of need, if it is not properly planned. Rather than taking the highest possible deductible, it is better to have a reasonably good deductible which can be met by the insured without difficulty. If you are healthy and do not foresee any ailments based on your habits, heredity and occupational hazards, the catastrophic health insurance plans work best for you.

The catastrophic health insurance plans are not for everyone. The restrictions imposed on the insured are perhaps, even more stringent than the regular plans. But, if one is relatively healthy and only needs insurance to cover major medical needs that may or might not occur, this offers a low cost solution. This plan can also be taken as a supplement to existing health insurance plans and can also be linked to HSA plans that offer added tax benefits apart from the health cover options. The catastrophic health insurance plans are the most cost effective options that are available in the market and are generally taken to save a lot of money on premiums.

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