Childhood and accidents are synonymous. You know they're coming, but how will you pay when they do? The frightening possibilities are endless, and child health care costs are astronomical. What if he falls of his bike; what if she gets sick? What if, God forbid, there's a tragic accident? Could insurance be the answer? Do companies offer health insurance for kids or individual child life insurance policies, and how do you decide what's best for your child and your finances?

Determine what you need in a child health insurance plan before you start shopping. Policies vary widely. One child health insurance program may cover 100% of child health care costs, while another only pays 80%. Some plans include dental, prescription and even child life insurance coverage others do not. If your child sees his doctor often, you'll probably want office visits covered. If she's not accident prone and rarely sick, a child health insurance program with a higher deductible could be right for you.

Now that you know your requirements, you are ready to decide what type of policy best meets them. Traditional health insurance, called an Indemnity plan, allows you to choose your own doctor, does not require a referral for your child to see a specialist, but is often the most expensive. Indemnity coverage usually doesn't pay up-front for medical expenses; you do. They reimburse you for allowed charges. The more modern PPOs and HMOs dramatically reduce your out-or-pocket expenditures; they also limit your choice of doctors. You are required to use a doctor who is a member of their network, and you will need a referral to see a specialist. While most have hundreds, if not thousands, of participating providers, your physician may not be among them. PPOs will still pay if you choose to see a doctor who is not in their network, but a reduced rate.

Research the companies that offer child heath insurance programs. Use the Internet to search "health insurance for kid"; visit the corporate sites of the companies that interest you. Read what they say about themselves then take time to find out what their customers say about them. Does the company have a good reputation? Are they involved with the community? Once you have found the right company for you, you're ready to call an agent for a child health insurance quote. Remember that things like the deductible, dental, prescription and child life insurance coverage directly affect your premiums. Work closely with your agent to ensure you get the best bang for your buck. Take time to get all your questions answered before purchasing child health insurance. You won't stop worrying about your kid, but you will have the peace of knowing that come what may, you're covered.

Learn more about this author, Michelle Roberts.
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