Buying health insurance is not like any other purchase you will make. When you pay your premiums, you’re buying the future security for your family that only insurance can provide. Among its many uses, insurance helps ensure that, if you become ill, your dependents will have the financial resources needed to protect their home and the income needed to run a household.
Choosing a health insurance product is an important decision, but it often can be complicated. As with any major purchase, it is important that you understand your needs and the options available to you. Comparing the various plans and companies that offer them can be an arduous and time consuming task. Fortunately, much of that work has been done already by the agents you will need to access your selected insurance product. To see the largest list available on the internet, visit eHealthInsurance.
LEARNING THE BASICS
The best way to make an informed decision about buying health insurance is to become familiar with the basics.
How much insurance do I need? Before buying insurance, you should assemble personal financial information and review your family’s needs. There are a number of factors to consider when determining how much protection you should have. Your agent will be able to help you assess those needs. For more information, and a fuller discussion of this topic, visit eHealthInsurance.
After you have thought about your financial needs and have become familiar with the basic types of health insurance, you will need to choose a company and agent.
How do I choose a company from among the thousands of companies in the
Before purchasing a policy, check the company’s financial condition. You can do this by asking the agent or requesting information from your state’s insurance department. A number of insurance rating services rate the financial strength of companies. These ratings can be found in large public or business libraries, or can be obtained directly from the rating service.
How do I choose an agent? The following are some questions you may want to ask a potential agent:
Is the agent licensed in your state? All states require that agents be licensed to sell insurance. What company or companies does the agent represent? Does the agent have any professional designations? Agents who also are financial planners may have designations, such as Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP) or Member of The Registry of Financial Planning Practitioners.
What can I expect an agent to do for me? An agent should be willing and able to explain various policies and other insurance-related matters. Let your agent know what you expect from him or her. You should feel satisfied that the agent is listening to you and looking for ways to get you the right type and amount of insurance at an affordable price. If you are not comfortable with the agent, or you aren’t convinced he or she is providing the service you want, find another agent.
THE AGENT VISIT
What can I expect during an agent visit? The agent you have selected will meet with you to discuss your health insurance needs. He or she will ask questions about family income and your net worth. Using the information you already have assembled about your financial situation, you should be prepared to discuss your insurance options.
In this initial meeting, be prepared to answer questions about your health (for example, age, medical condition, medical history, family history, personal habits). It is important that you answer these questions carefully and truthfully; this information helps a company charge a fair premium for your coverage. For instance, you may pay a lower premium if you don’t smoke. On the other hand, if you have a chronic illness, you may be charged a higher premium.
Also, in the event of a claim, accurate and truthful answers enable your beneficiary to receive prompt payment. Inaccurate or untruthful answers, however, may cause delay or even denial of a claim.
YOUR AGENT’S RECOMMENDATION
Once you have discussed your financial needs and objectives with your agent, he or she will recommend the type of insurance policy that will best suit your purposes. Often, the agent will provide a 'policy illustration' that will show how your policy will work.
Carefully study your agent’s recommendation and ask for a point-by-point explanation if there are items you don’t understand. Because your policy is a legal document, it’s important that you know what it provides.
What happens if I fail to make the required premium payments? If you miss a premium payment, you typically have a 30- or 31-day grace period during which you can pay the premium with no interest charged
What happens if I become disabled and can’t pay the premiums on my policy? Provisions or riders that provide additional benefits can be added to a policy. One such rider is a waiver of premium for disability. With this rider, if you become totally disabled for a specified period of time, you do not have to pay premiums for the duration of the disability.
When will the policy be in effect? If you decide to purchase the policy, find out when the insurance becomes effective. This could be different from the date the company issues the policy.
Buyin Health Insurance is one of the most important decisions you can make for yourself and your family. For more information, and to recieve free quotes, visit
