What to look for in a policy

No matter how detailed the quote, the final test is the wording of the policy. This is the contract between you and the company. If there is any dispute, the words in this document decide who is right and who is wrong. Sadly, nothing said to you before you buy is relevant unless it amounts to a misselling or fraud. The insurance department or commissioner for your state is always open to hearing complaints about alleged misselling. If you think you have been victimized, make a complaint. If the department or commissioner agrees with you, you can either get your money back or the company can be ordered to pay out on a claim. Most of the best insurers allow what’s called a recession period, i.e. you have up to ten days to read through the policy and decide whether you want to confirm the agreement. If you decide to cancel, you can get your money back. So what do you look for when reading the agreement?

First off, do you understand it? You need simple and clear explanations of what is, and is not, covered, and the date upon which the cover starts. If something is not clear, ask for it to be explained. Because the company has not yet got a confirmed deal, it is reasonably helpful. It wants you to go past the ten day period. Getting everything clear before you start saves endless time and good will if you have to make a claim. One of the reasons why people get angry when dealing with a claims department is they often do not understand the policy. If you know what you can claim for before you start, you get faster results.

Now check whether the policy is noncancellable and you have a guaranteed right to renew. One of the major problems with some health plans is that the insurer can cancel the policy if your health changes for the worse. Think auto insurance: many insurers cancel if you make too many claims. Ensure the health company cannot cancel so long as you have kept up the premiums. Some companies get round this by hiking your premiums or changing the amount of co-payments. Read through the terms to see what is allowed. Equally, you want the right to renew the policy automatically even though your health is now poor. The standard protections prevent the company from discriminating against you. The company can only cancel a policy for everyone. Finally, look at the rules on pre-existing conditions and portability. When moving to a new company, you should get credit for premiums already paid and not have to wait through the pre-existing condition period. The conclusion? Getting those health insurance quotes is only the first step in the process that goes on after you get the policy. Do whatever you can to ensure you have the right deal in place to protect you and your family.