The 10 Questions You Should Have Asked Your Health Insurance Agent
2010-07-16
Obtaining the right health insurance plan for yourself or your family is so critically important to your peace of mind. Don't just sign up with the company with the biggest yellow page ad or flashiest website. Shopping online allows you access to a number of competitive insurance quotes. Before you sign up for your new health insurance plan, get multiple insurance quotes and ask your potential agent the following questions. It could mean the difference between getting the wrong policy for your needs and budget and right policy that fulfills your needs at the right price.1. What is the rating of this company? Every health insurance company has a 'rating' from A + to F given to it by the AM Best Company. AM Best is well recognized as the gold standard in rating insurance companies. Ask your agent what the AM Best rating is for the company they propose - if it is anything other than 'A' rated or above - ask your insurance agent for an alternate.
2. Is the insurance company you are considering governed by the rules of the state where you reside? If not, you run the risk of the company raising rates since they do not need permission from your state insurance dept. to do so. So deal with a company governed by your state if at all possible. Do not join an out of state association to obtain health insurance.
3. Can this insurance be canceled for illness? Most policies today do not allow cancellations due to illness. The insurance company can cancel you only if they cancel everyone in your particular state.
4. Are there maximum amounts payable per cause or per year in the policy you
are considering? Policies may have limits built in as to what they will pay
out to you per year, per lifetime of the policy or per incident. For instance a 2 million dollar lifetime maximum policy with a 100,000 per year maximum would not be a good policy typically. Also, a 2,000,000 maximum lifetime policy with a 100,000 per illness maximum would also be a poor choice. Look for policies without maximums per year or
per instance.
5. Are their maximum amounts payable for certain procedures?
It would be preferable to have a policy that does not have a maximum amounts. You don't want limits on what your operation can cost. Would you want a policy that
paid only a limited amount on your life saving operation such as a gall bladder removal?
6. Are there waiting periods for pre existing conditions? If you have a pre existing
condition ( a disease or injury you have been treated for in the last 1-2 years ) you may or may not be covered for that specific condition for a period of 1 year or more depending on the company. So make sure you understand how long the waiting period is for your particular condition.
7. Are there waiting periods for routine care? Some insurance carriers will place a
waiting period of up to 90 days for preventative visits within their policies. It is
preferable not to have such waiting periods.
8. What is not covered, specifically? Have the agent explain in detail what is
excluded from coverage in the policy they are recommending to you.
9. Does this company pay their claims promptly? This is important because unpaid
claims can go on your credit report. To check how promptly the company you
are considering pays claims you can check with your doctors office, or the local hospital's
insurance department.
10. Is the agent going to be available to assist you in any dispute with the insurance company? Make sure you work with a reputable agent who has worked in your community for a number of years and who is in good standing with your state insurance department. If the agent is not easy to reach, you may want to consider working with someone who is because you never know when you might need them.
Getting an insurance quote is the first step in obtaining the peace of mind that comes with
making sure you are fully insured.
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