Important Questions To Ask When Choosing Insurance Coverage
When’s the last time you sat down and considered your insurance options? Let’s face it, it’s not exactly on the weekly “to do” list for a number of reasons, so it’s no surprise that many people are caught off guard when a disaster strikes. One thing to keep in mind is that you don’t have to live in a region prone to major disasters (e.g., an earthquake or hurricane prone area) to discover that your current insurance policy is woefully inadequate.
Many people find purchasing insurance to be a difficult process, but since it’s more or less a necessary evil, I’ve compiled a list of main things to consider when you actually do take the time to insure your coverage is adequate.
Conditions that are already present and Full Disclosure
All claims for insurance coverage are reviewed by an underwriter before they are accepted. When you apply for some kind of individual health insurance policy, an underwriter can look at pretty much everything about you that has to do with your medical background.
Be frank with it and make sure to report your pre-existing conditions, as the underwriter will most likely find out about them anyway, and if you forget to mention them, you might be refused coverage. And if the underwriter misses a pre-existing condition that you didn’t disclose and you get licenced, you’re still not out of the woods. The explanation for this is that if you make a petition before payment, they may review your records again, and if they discover your pre-existing condition at that point, they may not only deny your application, but you may also be found guilty of fraud and face a fine, or even worse.
While several businesses refuse to cover people with pre-existing conditions, others do, but only after a 30, 60, 90, or 120-day waiting period, and some are required by law to carry “guaranteed issue” policies. Get a full list of what is considered a pre-existing condition, the exclusionary duration, and the form of coverage that will be given after the exclusion ends before signing on with a company.
The comparison of rates
Of course, prices are significant, but don’t forget to compare quotes for policies that have similar coverage. Make a copy of all quotes so you can see the types and quantities of coverage in each group, and then make sure that any quote you get is based on the same coverage amounts, so you’re comparing apples to apples, as the saying goes. If you receive a quote that is significantly lower than other companies’ quotes, make sure it is accurate by inquiring as to how they are able to provide coverage at such a low cost. The response may be that a particular company specialises in a specific form of coverage and therefore offers it at a significantly reduced price, but if anything seems too good to be true, it typically is. So keep in mind that a healthy dose of scepticism will get you a long way.
Dealing with Independent Agents is a challenge.
Most professional insurance brokers are a gold mine of knowledge about the insurance industry as a whole, but they can also provide you with input from other customers about a specific insurance firm, their products, and their customer service.
That’s okay, you’re the boss, do whatever you want
Since you and your family will have to deal with the repercussions of the coverage you choose, it’s important that you consider your desires and needs before deciding on the form of coverage to purchase. One thing you may want to consider is… How critical is it for you to be able to choose your own physicians? If this isn’t a problem, an HMO could be a good cost-cutting solution to consider. On the other hand, if you have a favourite doctor and insist on seeing them no matter what, you may want to choose the more expensive PPO.
Whatever company you choose, make sure its products and coverage choices are flexible enough to evolve with you and your changing needs. As a consequence, if you intend on having children, a company that specialises in catastrophic coverage might not be the best option.
When it comes to choosing coverage, some other important factors include: add-ons, deductibles, customer service, rate increases.
Add Ons and Bundling
Multiple coverages are combined or bundled together. If this is a function that is relevant to you, check with your insurance provider to see if it is available. Combining short and long-term impairment, prescription coverage, or dental and vision coverage into a single plan is an example of bundling or “add-ons.”
Deductibles and Co-Pay
Still read the fine print and enquire about it. “What are your co-pay options?” and “Is there an annual limit on co-pays?” are two good questions to ask. or “Do the limits apply to every 365-day cycle or the standard calendar year?”
Often check a company’s status with the Better Business Bureau, and if having access to a local agent is vital to you, make sure they have a local office. If not, send the organisation a call to get a sense of how long it takes to get a hold of someone, how long it takes to get a hold of someone, and what resources are available on the phone and on the internet.
Unpredicted Rate Increases
Ask a few questions about your friends’ interactions with the business. Has there been any service issues or cost changes in the last two years? This will give you a good idea of what rate increases will be in store for you in the future.