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How To Shop For Your Individual Health Insurance Policy
By Sandra Cohen
Not everyone has access to employer-sponsored insurance. While business supported health companies garner the efficiencies of scale, providing more benefits with lower premiums simply because of the number of people enrolled, Individual health policies can be an effective way to protect yourself in the case of injury, illness, or disability. Going without health in these days of increasingly high medical costs can cost you everything you own.
Shopping for an individual health policy can be confusing and more than a little intimidating. By knowing what to look for, what to avoid, and what questions to ask, you can provide yourself with more than adequate coverage, even if you are self-employed, a new employee, or simply seeking more coverage than is provided by your place of employment.
Understanding Jargon And Terminology
States vary in their requirements and rules, but understanding the basic terms involved with individual health will help you be a more effective shopper and a more discriminating individual health buyer. Your current health status may or may not be grounds for denial of future insurance. This is called "guaranteed issue." "Guaranteed renewability" refers to the health company's right, or lack thereof, to cancel your coverage if you become ill in the same way the auto companies cancel coverage for people who have been involved in too many accidents. Ideally, you should try to get a "noncancellable, guaranteed renewable" individual health policy. Second best is a "conditionally renewable" policy that only allows an company to cancel all policies within a specified category, but not yours alone.
Depending upon your state of residence, health companies can resort to "limits on pre-existing
conditions exclusions," which may disallow coverage for medical conditions that were in effect prior to your initial coverage. "Portability" refers to whether or not you get credit for prior coverage or if you must wait until completing the standard exclusion period. You will also want to look for a health company that offers a rescission period during which time you can evaluate the policy. Normally, rescission periods are 10 days in length. If at the end of this examination period you decide you do not want the coverage, you can cancel your individual health policy and receive your full premium back.
Insurance Information Sources
The Internet is an excellent medium for health shopping and the comparison of health companies. Since the laws of each state vary, you will need to become knowledgeable about your state's laws. Georgetown University offers an interactive site (Healthinsuranceinfo.net) with information about each state, the terms, coverage limitations, and premium policies specific to your state. Another online resource is the National Association of Health Underwriters. Their website can help you find the best independent health agent in your state for your needs.
One of the best tools for online individual health shopping can be found at eHealthinsurance.com, which allows you to create a side-by-side comparison of a number of independent health companies. The most important thing to keep in mind when shopping for individual health is to make sure that you understand exactly what is covered, when coverage begins and what is not covered. If there are any aspects of your policy that you do not completely understand, it is up to you to contact your individual health agent and make sure you understand everything
Health Insurance Finders is committed to help the consumer find the most appropriate medical insurance plan. Get free quotes on Individual health insurance, Student health insurance, group health insurance.
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