Indemnity vs. Major Medical Insurance: Which One Fits Your Needs?
Choosing the right health insurance is a challenge, especially for young professionals and entrepreneurs. Should you go for a major medical plan or an indemnity plan? Understanding the pros and cons of each will help you make an informed decision.
Major Medical Insurance: Comprehensive but Expensive
✔ Covers pre-existing conditions
✔ Covers routine doctor visits, hospital stays, and prescriptions
✔ Required for everyone in some states
❌ State-based coverage—limited outside your home state
❌ More expensive than indemnity plans
Best for: People with pre-existing conditions or those who want full medical coverage.
Indemnity Plans: Affordable but Limited
✔ Lower monthly premiums (as low as $150/month for young males)
✔ Works nationwide—no state restrictions
✔ Good for young, healthy individuals who rarely visit the doctor
❌ Does not cover pre-existing conditions (including pregnancy)
❌ Limited doctor visits per year
Best for: Young, healthy entrepreneurs who need basic coverage for emergencies.
Which Plan Should You Choose?
- If you travel frequently or work in multiple states, an indemnity plan is better.
- If you have ongoing health concerns, a major medical plan is worth the extra cost.
Pro Tip: If you’re self-employed and looking to provide insurance for employees, remember that group insurance requires covering at least 50% of premiums. Independent contractors can’t be included under traditional group indemnity plans.
Don’t wait until you need medical care to figure out your insurance. Choose a plan that fits your lifestyle and budget before you need it.
Contact us today!
