When was the last time you took a moment to think about your insurance? Let's face it, it's not exactly on the weekly "to do list" for a number of reasons, so it's not surprising that many people are unprepared when an emergency happens. One thing to keep in mind is that you don't have to live in an area that is prone to major disasters like earthquakes or hurricanes to realise that your insurance coverage is woefully out of date.
Many people find it hard to buy insurance, but since it's more or less a necessary evil, I've put together a list of important things to think about when you finally take the time to make sure your coverage is up to par.
Conditions that were already there and full disclosure
An underwriter looks over all insurance applications before agreeing to cover someone. When you apply for any kind of individual health insurance policy, it is the underwriter's job to look at pretty much everything about your health history.
Be honest about everything, and make sure to tell the underwriter about any pre-existing conditions. Most of the time, the underwriter will find out anyway, and if they do and you didn't tell them, you could be turned down for coverage. Even if the underwriter doesn't catch a pre-existing condition you forgot to mention and you still get approved, you're still not out of the woods. The reason is that if you ever file a claim before getting paid, they will look at your history again. If they find out about your pre-existing condition at that time, they will not only deny your claim, but you could also be found guilty of fraud and have to pay a fine or something even worse.
Some companies will cover pre-existing conditions, but only after a waiting period of 30, 60, 90, or 120+ days. Other companies are required by law to have "guaranteed issue" policies. Before you sign up with a company, find out in detail what is considered a pre-existing condition, how long it will keep you from getting coverage, and what kind of coverage you will get once the exclusion period is over.
Rate Comparison
Rates are important, but don't forget to compare policies that cover the same things. Get a copy of every quote so you can see the type and amount of coverage in each category. Then, make sure that every quote is based on the same coverage amounts. This way, you can compare "apples to apples," as the saying goes. If you get a quote that is much lower than what other companies have given you, make sure it's real by asking how they can offer coverage at such a low price. The answer could be that a certain company specialises in a certain type of coverage and offers it at a much lower price, but if it sounds too good to be true, it probably is. So remember that a healthy dose of doubt will get you a long way.
Dealing with Independent Agents
Many independent insurance agents are a treasure trove of useful information about the insurance industry as a whole. Perhaps even more important, they can also give you feedback from other clients about an insurance company's products and customer service.
You're in charge, so do what you want.
Because you and your family will have to live with the results of the coverage you choose, it's really important to think carefully about your wants and needs before deciding what kind of coverage to get. One thing you might want to think about is... How important is it to you that you can choose your own doctors? If it's not a problem, an HMO might be a good way to save money. On the other hand, if you have a favourite doctor and you want to see them no matter what, you might want to think about the more expensive PPO.
No matter what company you choose in the end, its products and coverage options must be able to grow with you and your changing needs. Because of this, if you want to have kids, you might not want to go with a company that specialises in catastrophic coverage.
When choosing coverage, you should also think about things like add-ons, deductibles, customer service, and rate increases.
Bundling or Add Ons
Putting together or bundling together multiple coverages. If this is an important feature to you, you should make sure that your insurance company gives you the chance to get it. Combining short-term and long-term disability, drug coverage, or dental and vision coverage into a single package is an example of bundling or "add-ons."
Co-Pays and Deductibles
Always read the fine print and ask questions about it. Some good questions are, "What co-payment options do you have?" and "Is there an annual limit on co-payments?" "Do the caps cover any 365-day period, or do they follow the traditional calendar year?"
Always check a company's rating with the Better Business Bureau, and if you need to talk to a local agent, make sure they have an office in your area. If not, call the company and find out how long you have to wait on hold, when they are open, and what services they offer over the phone and on the internet.
Rate Increases No One Saw Coming
Ask your friends what they think about the company. Have there been any issues with service or rate hikes in the last two years? This will give you a pretty good idea of what rate changes might happen in the future.
You can only copy this article in its entirety.
