Buying health insurance can be a scary process. It doesn’t have to, but it can be, understandably, cumbersome if you have not done your homework. I know there may be some who feel they can self-insure. But for the rest of us who don’t have $5 million to spare, leasing the coverage for a few hundred dollars a month appears to be a fair exchange of our hard-earned dollars to better mitigate possible financial disasters.
With that in mind, here are the top 10 tips to purchasing your next health insurance policy.
1. Know what you need. Only you know your personal and family medical history, so you must look at your individual situation and question what your needs are. Are you planning on having a baby? Are you, currently, dependent on any medications……….Are you children participating heavily in sports? These are all questions you must ponder to make an educated decision on how much coverage and the types of coverage are most important in your decision to purchase health insurance.
2. Don’t succumb to pressure. If your “Spidey Sense” is going into overdrive or If you are uncomfortable with the amount of coverage being offered, seek a second opinion, but never leave yourself uninsured to do it. Again, never leave yourself uninsured.
3. Compare policies. Not prices. Remember, health insurance prices are fixed by law. No agent can offer you a better price for the same plan in your state. If you are switching policies, compare benefits, premiums, limitations and exclusions carefully. They make the difference between true insurance savings and a mistake. Agents should have the ability to lay out the differences for you.
4. Don’t skimp on the price. Remember, this is your life. It is worth far more than a few hundred bucks premium you may pay per month. Having to pay for a necessary medical service out of your own pocket may cost you far, far more than what you could possibly save in premiums. It may also be financially devastating.
In the long run, the plan with the lowest premium may not work out to be the cheapest plan. The least expensive plan is the one that offers the best price for the particular coverages that you need.
5. Research your agent and carrier. Every state has a state insurance department which governs the actions of the professional assisting you. Do not be afraid to contact them for the history of any agency, company, agent, broker or brokerage you are considering. Most state insurance departments maintain complaint records of carriers so that you can see what type of complaints are on record for each company in your state.
6. If you don’t know, ask! Take notes when talking to an agent. True professionals don’t mind answering questions to better educate a customer. Actually, the more you know the easier the process is for everyone involved. Never be afraid to ask!
7. Answer all questions on the application accurately. Omitting or falsifying information could cause the company to deny your claims or cancel your policy.
8. Read before you sign. Never sign a blank application form. It’s okay if the agent wants to summarize large sections of verbiage for you, but go ahead and take the time to read it anyway……….Trust me. They will wait for you to finish.
9. Do not pay cash or make a check out to an agent. Even if the agent is a family member, make checks payable only to the insurance company or insurance agency. Insist upon a receipt when paying cash and insure you get a signature from the agent.
10. Know your rights. Insurance requirements vary from state to state as do your rights. Be sure to ask about penalties for cancelling and free-look periods. Also known as the free examination period, this is the length of time you have to review your new health insurance policy and return it for a full refund if it does not meet your expectations. This free-look period begins on the day that you receive your policy and is most commonly set at 10-days.
As a health insurance brokers, I must include an honorable mention. Life is unpredictable and so is underwriting. Do not cancel any existing policies until the decision has been made to accept the policy being offered by the insurance carrier. Remember, policies may come back from the carrier with limitations and exclusions. If the policy does not meet your coverage requirements at least you will still be insured while you shop around.
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