Fortunately there is such a thing as renewable individual health policies which are really worth the money. There are also renewable plans for group policies. The nice thing about these types of plans is that they can never be cancelled, unless there is found to be foul play on your part. There are guaranteed renewable policies and policies that are non-cancellable.
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Affordable individual health insurance plans are an important part of your total financial plan. You want to find the right plan for your family’s needs. Once you find the perfect plan, it is great to have the opportunity to be able to renew it if you choose to do so.
What are the requirements?
With a renewable insurance policy for individuals, the insurance company is required to continue the policy. This policy is also known as guaranteed renewable. The individual being insured is required to keep current with the payments, but as long as they are the policy will be renewed until a particular age.
With a guaranteed policy, the insurance company can increase the rates. If you do not want your rates to increase, you should look into a policy that is noncancellable.
What is a noncancellable policy?
A noncancellable renewable policy is different from a guaranteed renewable one. The Insurance Information Institute defines that a non cancellable policy is one that guarantees coverage until the insured reaches a certain age.
With a noncancellable policy, the age defined is usually 65. Along with not being able to cancel the insurance coverage, the insurance company can also not increase the amount of the policy or change the provisions of the policy. This policy only remains in effect if the premium payments stay current.
Can the insurance company increase premiums?
If you have a guaranteed renewable health policy, the insurance company can raise the premiums. In general, the premiums may be raised for a whole group of people, which would include you.
Your premiums can also be increased for other reasons. These may include a new health condition, a new medical claim, or any other issue that would increase the insurance company’s risk. The rates for a noncancellable policy cannot be increased for these reasons.
When can the insurance company cancel my renewable policy?
For the most part, an insurance company cannot cancel your renewable health insurance if you pay your bills every month on time. However, there are a couple of reasons why a company is able to cancel your plan.
If you miss even one payment, or if a payment is late, the insurance company may choose to cancel your coverage.
Some companies may give you a bit of leeway on this, but to be on the safe side you should make sure to pay your bills on time.
Another reason that an insurance company may cancel your policy is if it is found that you committed fraud of some sort. It is considered to be fraud if you lied or omitted information on your application, such as prior health conditions.
If it is thought that you filed a false claim, it is considered to be fraud. A lot of money is lost every year because of insurance fraud, so the insurance industry takes it seriously. If you suspect any type of fraudulent activity, you can report it. Information can be found through the National Association of Insurance Commissioners.
What if you don’t need renewable health insurance?
Not everyone needs a health insurance policy that is renewable for years and years. For those individuals, there is health insurance available for the short term. Short term medical insurance is ideal for those individuals who are in between jobs and are looking for affordable insurance. It is also good for a new graduate who is looking for coverage before a new job begins.
Short term health insurance can be purchased for those individuals who are waiting to be eligible for Medicare. It is also good while waiting for new health benefits to begin or as an alternative to interim insurance options such as COBRA. Whatever your insurance needs are, there are multiple plans available from which to choose.
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