How to Make the Right Choices When Buying Health Insurance
Buying health insurance is no easy task, unless you are expertly trained in the field.
There are many potential pitfalls which can trap the unwary into parting with their money, for policies which are blatantly unsuitable for their needs.
It is vital to do your due diligence and research the market before you make any firm buying decisions.
This article will help you take that essential first step towards arming yourself with the knowledge you need.
One of the most important considerations is to make sure you actually need the insurance in the first place.
Many people have health insurance built into their employment contracts, and some may not even be aware of this.
Talk to your employer first, and make sure that you are not entitled to help with health insurance as part of your job.
It is after all, an attractive incentive for an employer to offer to potential employees, and in industries where companies are perennially having to compete with each other for top quality employees, it is harder to find a job without built in health insurance than it is to find one with it.
If you do have to go about buying health insurance on your own, the most important consideration is to be sure that the policy is "non-cancellable", and "guaranteed renewable.
" This means that as long as you keep paying the premiums, the insurance company cannot cancel the policy.
You do not want to get to the stage where a company takes your money when you are fit and well, and then finds an obscure clause to cancel the policy just as you are about to need it.
Also, always make sure that the policy comes with a ten day recission period, during which you can study the terms, make sure it is suitable, and then reject the policy if it is not right for you.
The situation is complicated considerably by the fact that different states have different rules, and these rules are prone to change.
In recent years many states have passed what are known as "guaranteed issue laws", which prevent health insurance companies from being selective in who they accept based on health condition.
The other policy which has been tried is that of forcing health insurance providers to charge the same rates to everyone irrespective of health or circumstances.
Both of these policies, and the way the market is manipulated, have had many negative side effects on the overall market.
Whether an insurance company is forced to insure high risk clients, or whether it is forced to charge everyone a flat rate, the inevitable result is that insurance is given to people who will almost certainly need to call on it many times.
This can only have the effect of forcing premiums up to unrealistic levels.
Once this happens, the fit people who are now paying more than the market should be charging them will often decide to chance their arm and live without the insurance.
This then leads to the premiums going higher again, and so a vicious circle is formed.
Living in one of the states which has implemented these policies can add an extra degree of difficulty in buying health insurance.
There are many potential pitfalls which can trap the unwary into parting with their money, for policies which are blatantly unsuitable for their needs.
It is vital to do your due diligence and research the market before you make any firm buying decisions.
This article will help you take that essential first step towards arming yourself with the knowledge you need.
One of the most important considerations is to make sure you actually need the insurance in the first place.
Many people have health insurance built into their employment contracts, and some may not even be aware of this.
Talk to your employer first, and make sure that you are not entitled to help with health insurance as part of your job.
It is after all, an attractive incentive for an employer to offer to potential employees, and in industries where companies are perennially having to compete with each other for top quality employees, it is harder to find a job without built in health insurance than it is to find one with it.
If you do have to go about buying health insurance on your own, the most important consideration is to be sure that the policy is "non-cancellable", and "guaranteed renewable.
" This means that as long as you keep paying the premiums, the insurance company cannot cancel the policy.
You do not want to get to the stage where a company takes your money when you are fit and well, and then finds an obscure clause to cancel the policy just as you are about to need it.
Also, always make sure that the policy comes with a ten day recission period, during which you can study the terms, make sure it is suitable, and then reject the policy if it is not right for you.
The situation is complicated considerably by the fact that different states have different rules, and these rules are prone to change.
In recent years many states have passed what are known as "guaranteed issue laws", which prevent health insurance companies from being selective in who they accept based on health condition.
The other policy which has been tried is that of forcing health insurance providers to charge the same rates to everyone irrespective of health or circumstances.
Both of these policies, and the way the market is manipulated, have had many negative side effects on the overall market.
Whether an insurance company is forced to insure high risk clients, or whether it is forced to charge everyone a flat rate, the inevitable result is that insurance is given to people who will almost certainly need to call on it many times.
This can only have the effect of forcing premiums up to unrealistic levels.
Once this happens, the fit people who are now paying more than the market should be charging them will often decide to chance their arm and live without the insurance.
This then leads to the premiums going higher again, and so a vicious circle is formed.
Living in one of the states which has implemented these policies can add an extra degree of difficulty in buying health insurance.