I’m an expert when it comes to term life insurance policies, but I saw this article in consumer reports and thought it’s something you should know about. Someone who can’t obtain comprehensive individual health insurance – especially in this economy – might be tempted to purchase one of the many lower-cost “affordable” plans out there.  These plans are frequently marketed through associations.

But experts say stay away because the premiums aren’t worth their limited coverage.

Consumer Reports tells the story about Susan Kelly, a 47-year-old Houston real-estate agent, said she had an individual “catastrophic hospital expense plan” through the National Association for the Self-Employed for about $650 a month. In 2004 she got a diagnosis of breast cancer. “The insurance covered my surgery and the three days I was in the hospital, and that was it,” she says. It didn’t cover tests, biopsy, or chemotherapy. She is paying off a $100,000 debt.

Here’s what Consumer Reports suggests to check in a plan:

• Make sure it mentions all types of coverage, including hospitalization, in-patient and outpatient surgery, office visits, mental health care, physical therapy, and prescription drugs.
• Avoid plans that set fixed dollar or number limits on visits, such as four visits per year or $500 per hospital day.

Look for disclaimers such as “This is not major medical coverage.” Avoid a plan that calls itself “limited benefit” insurance.