Choosing an Insurance Company

We don't think of it too often; as a matter of fact, unless weare faced with a health crisis or need, we don't think abouthealth insurance at all! It is no wonder that many of us arecaught unawares when an emergency happens, and some of ussuddenly realize that the insurance coverage we had ten yearsago is woefully out of date for our current needs. The first step in selecting a financially strong insurer is toshop around. Talk to several representatives or insuranceproducers from a number of different companies. Tell them whatyour insurance needs are and ask them what their company willcharge to cover you.While purchasing insurance can be a daunting task in itself,please remember that any plan is only as good as the companythat underwrites and stands behind it. To this end, here are tenthings to consider before choosing your next insurance company:Full DisclosureWhen purchasing an individual health insurance policy, theunderwriter will look at your medical history. Prior tocomparing rates, be sure to write down all pertinentinformation, so you will be able to compare apples to apples.Additionally, it will give you a feel for what kind ofinformation raises red flags for insurance companies. If yousuddenly deal with a company that does not bat an eyelash atyour skydiving accident that happened just last month, you willneed to ask a few more questions to make sure the rates don'tsuddenly change after you sign on.Pre-Existing ConditionsMost companies will not insure pre-existing conditions; otherswill do so after a sometimes lengthy waiting period. Stillothers are legally mandated to carry "guaranteed issue"policies. Prior to signing on with a company, get a detailedlist of what is considered a pre-existing condition, theexclusionary period, and also what kind of coverage will beprovided one the exclusion ends.Interview An AgentA licensed, independent insurance agent is a goldmine ofinformation and industry gossip. Furthermore, the agent will beable to share feedback received from other clients about a givenhealth insurance company, insurance products, and even customerservice. Have It Your Way!Since you will have to live with the health plan of yourchoosing, it is imperative that it will work for and with you.Therefore, you should think through your wants and needs when itcomes to coverage. For example, how important is it to you topick your own doctors? If it does not really matter to do, thenan HMO may be a cost-saving choice. On the other hand, if youhave a favorite doctor and wish to continue consulting thisphysician rather than picking someone else, you may wish toconsider the pricier PPO.Add-OnsSome companies will bundle their products with other coverages,such as short- and long-term disability, prescription drugcoverage, dental and vision coverage. If these are important toyou, you should make sure the insurance company you wish to dobusiness with will offer them.What Does The Future Hold?When picking an insurance company it is imperative that itsproducts and coverages can grow with you and your changingneeds. Thus, a company that specializes in catastrophic coverageonly will be of little use once you have children in the house. Out Of Pocket Expenses?Take the time to look at the fine print. For example, how muchare the co-pays? Is there an annual cap on the co-pays? Do thesecaps pertain to a calendar year or any 365-day period? Inaddition to co-pays, what is the percentage of coverage? RatingCheck out the insurance company's rating with the BetterBusiness Bureau. A company that has too many unansweredcomplaints does not need your business!AccessibilityAn insurance company should be easy to get a hold of, shouldhave extended office hours, and naturally also a toll-freenumber. Give the company a call and get a feel for average holdtimes, times of operation, and also services offered viatelephone. Rate IncreasesTalk to friends and neighbors who are insured with the companyyou are choosing, or if you are working with an agent, seek tofind out how often the insurance companies has raised its ratesin the last two years. This will be a fair measure of thepossible rate changes that will await you once you sign on!