HOW DOES SMOKING AFFECT YOUR INSURANCE?

"Smoker costs more so a smoker should pay more"

They say, “People who smoke a pack a day die 7 years earlier on an average, than people who have never smoked.” In fact, it has been assessed, that smoking of cigarette leads to one in five deaths in United States. In the last few years, CIGARETTE SMOKING has resulted to more than 400,000 death every year.

Smoking causes complex diseases like, stomach ulcers, heart attack, cancer (in particular lung cancer) as well as chronic obstruction in airway. In fact, if we overlook the number of adult deaths caused due to secondhand smoking, you would notice that the life expectancy of people has reduced to around 13 to 14 years. Smokers take around eight more sick days annually than the non-smoking co-workers do. This costs employers and business lots and lots per year.

Compare insurance budget for Smokers and Non smokers

• Smokers pay more on life insurance premium owing to the risk of dying younger.
• Some companies might charge a smoker more on the home insurance premium because a smoker run a higher risk in burning the house accessories.
• Sometimes companies demands higher premium for auto insurance because the smokers tend to drive casually and recklessly.
• Health insurance companies charge more from the smokers. They run a greater risk of making insurance claims.

How much hidden cost do you bear on smoking?

• Smoking decreases your house value, as it always smells of smoke.
• Smoking decreases your value of possessions, this might lead you to pay more for you condominium insurance.
• Smoking might reduce the resale value of your car. The insurance companies consider the smokers to be reckless drivers.
• The money that you on cigarettes is a sheer wastage, had you saved that it might have counted to your interests.
• Too much of smoking leads you to start paying more on medicines.
• Smoking increases the cost of cleaning vehicle, clothes, house etc.
• It also increases the cost of dental care.

How does the fatal effects of smoking harm your health insurance cost?

However, if you consider the cost of smoking, you would find that smoking costs up to $167 billion every year and $75 billion in direct medical expenses. Thus, every year more than $3400, costs for health insurance coverage and lost productivity for every smoker. Naturally, this gears up the unexpected rise in the health insurance cost.

It has been further deduced, that while each smoker is paying $5 per pack, the same pack of cigarette costs nearly $40 for the society. The smoker not only causes harm to himself but also to the entire atmosphere. The poisonous effect of the smoke spreads at random in the entire atmosphere causing dangerous effects. Consequently, the passive smokers, i.e. the non-smokers are bound to face the consequences of smoking and end up in suffering from serious diseases. Therefore, you can say that each cigarette packet in US costs $40 for health care cost (considering both, a smoker and a non smoker). Then can you tell me, why a non-smoker should agree to pay the same insurance premium like that of a smoker, who has an additional 90% possibility to claim reimbursement?

I believe it is unjustified, both from insurance business point of view as well as from the insurance buyers point of view.

1.Business point of view:

Almost all the insurance premiums are set on the basis of the intensity of risk of the claims. More is the risk for the company to make reimbursement, higher would be the premium amount charged by them. In case of long term care, the company charges premium on the basis of the risk of reimbursement they would have to bear on the person. So, more is the chance for you to claim reimbursement, higher would be the premium amount. But in case of health insurance, if the company runs a higher risk with the smokers than that of the non smokers why should they charge same premium form both ?

2.Buyer's point of view:

The active smokers cause deadly effect to the society. The poisonous effect of the cigarette may cause serious problems to the passive smokers. And this causes a substantial increase in the health insurance premium cost. So, how can the non smoker afford such unjustified and high health insurance cost ?

A non-smoker may suffer from lung cancer. An active smoker may also get affected to it for the same reason. In this case, though a non-smoker would make claims for his health insurance premiums like that of an active smoker, but the active smoker is the one who, is to be held responsible. So, can you deny that the insurance companies are at greater risk with smokers?

Every single puff of cigarette you inhale, your blood pressure increases. Then, how much would the packet full of cigarettes harm you? Can you assess the extent of damage that the deadly cigarette causes to you over one whole year?

All these together have led to a considerable rise in the health insurance premium. And this has led to disastrous condition of the health insurance market. About 40% of the US population does not have a health insurance plan today. 50% of them do not pay their health insurance premium. This is a major cause for the raging controversy regarding “Should smokers pay more for health insurance?” What do you say? They feel if the smokers are causing such harm to the society they should pay more for the health insurance cost.

Cigarette smoking as a curse

Present day effects of smoking

Smoking is the only reason for at least one grave disease caused to 8.6 million of the US population. Smoking is the prime cause for about 73% of the diseases caused due to heat. Smoking results in 90% of the death caused due to lung cancer. Smoking is the main cause of the 80- 90 % of the death caused due emphysema and chronic bronchitis patients. Smoking consists of at least 43 cancer-causing chemicals Smoking at the time of pregnancy is responsible for low birth weight babies. Second hand smoking causes 150,000 to 30,000 children respiratory infections. Smoking has resulted to the American women to die more of lung cancer than that of breast cancer. Smoking is said to be the most significant cause of death in America. It has been estimated that about fifty Australians die every day for smoking.

Diseases caused due to smoking

• Stomach ulcers
• Coronary disease and heart attack
• Raises your blood pressure and heart rate and decreases the blood flow. Due to low blood flow to the legs, a smoker may develop peripheral vascular disease.
• Respiratory diseases like chronic bronchitis or pneumonia.
• Stimulates your brain and nervous system activity.
• Results in weakening your immunity power. As a result, people who smoke more develop more of cold and flu than that of non-smokers.
• Cause impotency in men, and women less fertile.
• Passive smoking results to cancer in different parts of the body: as in the lung, mouth, bladder, kidney, pancreas, cervix, stomach, throat or even leukemia.

Thus, you cannot deny that smoking not only causes immense harm to your health but also increases your insurance premium cost. And the other dangerous effects of smoking is incomparable. The satanic effects of smoking becomes unrepairable at times.

So, despite the fact that the tobacco industry is enhancing the growth of the entire economy, it should be banned. What do you feel?

Smokers causes high risk. To overcome such risky situation some insurance companies have introduced more premiums on the smokers, be it life insurance or health insurance. Such companies feel “Non smokers have 25 times less risk from the ones who smoke 25 cigarettes a day”.

SHOP FOR AUTO INSURANCE POLICY : A Tips.

Lets check out the simple steps that we may follow while buying auto insurance:

1.Decide what coverages you need Think over and buy the coverages which you think are important. And the importance greatly depends on your situation and preferences. For example, if you drive a less expensive car, then you can exclude the comprehensive and the collision coverage because these will pay for the damages of your inexpensive car. You could buy only the Liability and the Personal Injury Protection coverages.

Again, you can also go for a lower liability coverage if you are a confident driver. In that case you can buy the minimum amount of liability coverage required by your state law. But it is advised not to keep it so low if you have other assets such as home or business because if the damages in an accident exceeds your liability coverage, you could have to lose those assets to pay for that.

2.Shop around and compare different companies This will let you know the rates of and the benefits provided by different companies. Getting a lower rate is not the only important thing. Services provided by the insurers do matter a lot.

For example, Geico have add-on features like emergency road service available for a nominal charge of $12 per year per car. Progressive have so many independent agencies in the US that it is very easy for a customer to approach a company representative for help and consultation.

3.Choice of deductible: A deductible is the amount that you must pay for a part of your losses before your insurer pays for the rest. If you choose to pay a higher deductible, your premium amount will be low. You have to pay the deductible amount out of your own pocket if you have an accident. If you drive cautiously and are not likely to have accident, you should choose to pay a higher deductible because the chances of accident are less.

4.Give correct information :When you apply for insurance, the insurance company officials may ask certain questions. Answer all the questions truthfully.

5.Check out the Financial strength and Complaint index of the company :The financial strength of a company indicates whether it would be able to satisfy your claims on time. It gives you an insight of the financial stability of a company. One can find out the financial strength of a company from an independent rating organization. Such independent rating organizations can also tell whether the company is licensed or not. Buy only from licensed companies.

The complaint index is based upon the number of complaints against the company. It gives an idea of the quality of customer service provided by the company. You can know about the complaint index of any company by calling the State’s Insurance Department.

FOR SAFE DRIFING! : A Tips

Safety tips before you start off to drive.

1. Make a set out plan for your trip.
2. To be confirmed that the lights of your car are working fine, turn the lights on and off before you start off your journey.
3. Check out, if there is any leakage in any of the pipes of your car.
4. Maintain the speed limit while driving.
5. Be cautious about the traffic rules while driving.
6. Maintain sufficient distance between your car and the one in front of you.
7. Be more alert at every turn. Follow the traffic rules, look this way and that while you are driving.
8. You should always be conscious while driving. You should never drink and drive.
9. Check out your blind spot while you are changing the lanes.
10. Be alert while crossing train tracks. Look right and then to the left and then to the right again while crossing the tracks.
11. It is always advisable to avoid driving in bad weather.

Handle your car with care.

1. There should be sufficient gas in your car while you plan to drive.
2. Check out if there is sufficient fuel in your car.
3. Regularly monitor the spare parts of your car.
4. Clean the mirrors regularly and keep the windshields clean.
5. Always carry a cloth in your car to clean the windows whenever required.
6. It is always good to monitor windshield, wiper blades and Rain X regularly.

Don'ts for safe driving.

1. Do not drive when you are drunk.
2. Do not drive in the storm.
3. Do not drive without wearing your seat belts.
4. Do not drive without keeping the headlights of your car on.

Remember!!!

1. First you need to do a quick check up if you want to drive.
2. Always avoid the “No-Zone” with trucks or buses; they cannot see you from several angles.
3. Whenever you are driving on a two lane road and you want to park, always attempt to stay towards the center in order to allow anyone who wants to open a door to exit the vehicle in front of your car.
4. As you adjust the car set up, you should always set up the mirrors and seats. Properly adjust the left mirror and place your head against the left window and adjust the mirror so that you may see the left side and adjust the mirror at the right side.
5. If the traffic light turns green, first look to the left then to the right and then to the left again before you move.
6. If an emergency vehicle is coming, move towards the right side of the road and stop. Switch on the hazard lights, so that everyone can see you.
7. Normally left lanes are only for the passing while you are traveling on a multiple lane road.
8. You should be proficient with the traffic rules and the signs and signals you come across the road.

INSURANCE UNDERWRITING PROCESS

The underwriting process is associated with insurance, the same way it is associated with other financial services. It is all about measuring the chances of risks as also the premium needed to cover that risk.

What is the role of an underwriter?

The underwriter's job is to scale the risks and probabilities that may refer to their prospective clients. They are needed to ascertain the worth of your insurance coverage. They would also help you to decide the amount of premium that you need to pay.

The processes of underwriting & segmenting the insured risks may be clear, only after studying the pool of risks associated with them. This is also essential in order to understand the uneven distribution of risks. The underwriting guidelines defined by an insurance company may vary towards deciding the fate of an insurance application. The underwriter may choose to reject an application or may also choose to offer a quote referring the different premium levels. This might also indicate circumstances that involve a variety of exclusions, which mandate certain conditions towards the payment of claims. The underwriting process necessitates prospective clients to pay their premiums to that extent as is required by the insurer towards meeting the unforeseen risks associated with such individuals, in the event that they might occur. Hence, the procedure of identifying risks & explaining them to a client becomes the sole obligation of the insurer.

At times, the insured might just succeed in making the insurer see no reason towards properly justifying the associated risks, thereby inviting a higher expectancy of losses arising out of it. Under such circumstances, the insurer might just need to charge higher premium rates in order to fill the lower returns & save him from insolvency. The insurance companies are subject to huge risks worth billions every year in terms of financial losses arising out of protecting an insured person or a group. Underwriters are there fore needed to focus on every minute detail while arriving at a premium rate for a certain individual or even at offering a policy for that purpose. While doing these the underwriters would also need to keep a track of the steps and measures undertaken by their competitors towards achieving their goals, failing which they might lose their business to their rivals.

The different areas of operation:

The underwriters would certainly like to focus at any of the main branches of insurance namely – life, property & casualty and health.

It is common for the life & health underwriters to specialize at group or independent policies depending on their areas of operation and qualification. In order to decide about the functions of a group policy, the group underwriters would often resort to representatives of the union or the employer. For the property and casualty underwriters, it is quite normal that their operational areas would depend on the nature of insurance they are associated with (eg. personal or commercial insurance), as also the nature of the risk involved. The group underwriter has to keep a check on the overall risk, so that it never crosses the limits. This is dependent on his study of the group patterns. In contrast, the casualty underwriter has to study the contribution of the individual group members and then forward his feedbacks based on his report. With the advent of the modern computers, it has become easier for the underwriters to figure out the different risk factors associated with a prospect & then arrive at a quicker decision regarding their approval of a policy. This fast-track decision-making process is contributing largely towards the overall growth of the capital fund of the modern insurers.

HOW TO SAVE ON TRAVEL INSURANCE

As life expectancy increases, so has the age at which 'life begins' – with many people supporting the idea that 'life begins at 50'. Unfortunately, travel insurance companies disagree. Or at least that is how it seems, considering how rapidly premiums rocket for those who are 50 or over. And as for those who are over 70, many "are shocked to find travel insurers unwilling to provide cover at prices they can afford", says Kara Gammell in The Daily Telegraph. So how do you find affordable travel insurance that won't leave you high and dry if you fall ill on holiday?

Consumers need to think of travel insurance as something they should tailor to their own needs, rather than an off-the-shelf product, says The Daily Telegraph. So one of the simplest ways of reducing the premium is to look carefully at the level of cover you are being offered and then decide whether you actually need it all within the policy. For example, if you are travelling to Europe, opt for European cover rather than worldwide cover, as the latter includes America, where litigation and medical costs can push up the cost of cover. Also, consider covering personal possessions under your home insurance – and, as always, shop around for the best deal.

Eat your greens. Food inflation is forcing the weekly shopping bill to new heights, but broccoli is proving the exception, says The Guardian. It is one of the few vegetables that is falling in price, due to plentiful current supplies. The average price is now £1.38 per kilo – down 27% from this time last year. So stock up on broccoli. But forget the cheese sauce. Cheddar prices rose 10% last week alone, according to The Grocer.

Choose your pets carefully. A Great Dane will cost its owner an average of £669.64 in damages over a lifetime, says eSure, and small dogs aren't much better. Chihuahuas cause an average carnage bill of £638.41 during their lives. Add in medical bills and food, and dogs are expensive members of the family. But there are ways to cut the costs.

Save on vet's bills. If you haven't bought a dog yet, then opt for a mongrel. "They tend to be less prone to disease and cheaper to insure," says Ali Taylor from Battersea Dogs & Cats Home in The Independent on Sunday. What if you already have a pet? You could consider pet insurance to cover emergency vet bills, but do shop around and check the small print carefully: pet insurance is notorious for exclusions based on age and other factors. A better route is prevention – take your dog for regular walks and cut back on the treats. A healthy, fit canine is far less likely to get ill than a fat one.

Save money on clothes. You can currently get 30% off at Gap. Just go to MONEY SAVING EXPERT, fill in the form and you can print off a voucher giving you 30% off in Gap until Sunday 28 September.

BEWARE OF DODGY INSURANCE

"A huge victory for consumers" is how Peter Vicary-Smith, head of Which?, hailed the latest payment protection insurance (PPI) proposals from the Competition Commission. No wonder. As Thisismoney.co.uk notes, the "charge sheet against PPI" (which is meant to insure you against being unable to repay a loan or credit-card balance if you fall ill or lose your job) is long. Complaints about Britain's 13 million policies include that it's "overpriced, sold to people who can never claim on it, sold with no cancellation clause, and often ineffective". It's also often "forced on customers by pushy sales staff".

The statistics are grim. Only 14% of PPI premiums are returned to customers as a result of successful claims – that's compared to 78% for car insurance and 54% for home insurance. And as Caroline Binham reports on Bloomberg, the regulator found in June that PPI providers overcharge customers by £1.4bn a year, against annual sales of £5.5bn. So what's changing? The Competition Commission stopped short of banning PPI altogether. But it is banning "single premium policies", where the premium is paid up front and often added to the original loan as a lump sum. Providers will also be stopped from pushing customers to take PPI immediately. They will have to wait 14 days and tailor any quote to ensure the policy is suitable.

Fine, say the banks – but loan rates will rise because the income from PPI sales often subsidises interest charges. And the changes come just as people need cover going into a recession. This is "nonsense", as The Independent's Julian Knight puts it. There's "never a good time to be mis-sold a policy". The extra transparency should stop millions from buying cover they either don't need, or that doesn't do what they expect. If you think you may have been sold an unsuitable PPI plan – some campaigners reckon there's a problem with up to half of them – you can complain to the Financial Ombudsman.

TIPS TO HELP IDENTIFY YOUR NEEDS IN INSURANCE : For Temporary

Key Concept: The most significant differences in international health insurance are not in the benefits and rates, but rather in the wording of the plan definitions and exclusions by which your insurance benefits are actually paid . . . or not paid!

Here are 8 tips and suggestions intended to help you identify the best choice for your exact needs and situation. (Note: Comparisons below are for guidance purposes only. Please confirm all details in plan brochures.)

1. Coverage Period (or Policy Period)

This is a seemingly obvious definition, but we start with this term as it is used in other definitions here.

If a medical condition is first diagnosed or treated during the "Coverage Period," then eligible insurance benefits will be paid (subject to policy limits).

2. Benefit Period (very important!)

* The "Benefit Period" is not the same as the "Coverage Period." The "Benefit Period" is the maximum period of time during which an insurance policy will pay benefits for a covered condition that was first diagnosed or treated during the "Coverage Period."

The "Benefit Period" may extend beyond the end of the "Coverage Period" (and often does). In many cases, a longer insurance Benefit Period is desirable.

* If temporary insurance is your only health insurance, then an extended Benefit Period is a vital feature.

Note: There are temporary international health insurance plans being sold today whereby the Benefit Period ends when the Coverage Period ends (unless hospitalized or some other extreme contingency). This is OK if you have full coverage upon return to your Home Country. Otherwise, if your plan has no extended Benefit Period, then the last few days or weeks of your insurance coverage could prove to be of limited value.

3. "Pre-Existing Conditions" (very important)

All private health insurance plans contain "exclusions," which are conditions, circumstances, or treatments which are expressly not covered. One common exclusion is for "pre-existing conditions."

The definition of "pre-existing condition" varies by plan. Some plans have a clear or less ambiguous definition, using terms such as "symptoms," manifested," "diagnosed," etc. On the other hand, some plans have an ambiguous definition of "pre-existing condition," which could be interpreted less favorably for you.

() A check mark indicates some coverage for pre-existing conditions.

In Summary: The plan definition of "pre-existing condition" and possible coverage for such conditions (if any) can be key factors to when reviewing temporary insurance plans.

4. Do You Want The Option Of Home Country Treatment?

On occasion, someone traveling abroad suffers an injury or illness, whereby they wish to return to their home country (including to the USA) for follow-up treatment and recuperation.

If you maintain domestic health coverage during your travel abroad, then this plan feature may not be of importance to you. However, if temporary international health insurance will be your only health insurance, then how a policy treats "Home Country Treatment" can be a very important consideration.

Note: This is NOT the same as "Home Country Coverage," which is an optional or built-in benefit on many temporary international plans. "Home Country Coverage" provides limited, short-term medical coverage during one or more short-term trips back home.

5. Definition of Home Country

Temporary health and travel insurance plans cover you while traveling "outside of your Home Country." For most people, this definition is straightforward. However, you should understand how each plan defines "home country" to be sure you are eligible.

Note: temporary health insurance plans do not go into effect until you leave your Home Country (as defined in the policy), and coverage typically terminates upon your final return. Exception: many plans contain limited coverage during one or more "incidental trips" back to your Home Country for a limited period of time, when you are able to demonstrate (for example, with a round trip plane ticket, etc.) the intention of resuming your travel abroad.

Important note for US Immigrants: If you are a recent US immigrant, please see our plans designed especially for you. As noted above, temporary travel insurance covers you while traveling outside of your "Home Country." As an immigrant, the USA is now your home country and ordinary temporary travel plans are not intended for you.

6. Who Regulates Your International Insurance Company? (important)

In the USA, health insurance is primarily regulated by the individual states. If you are a USA resident traveling abroad or a visitor to the USA, I strongly recommend that you only consider insurance from companies that are registered (either "admitted" or "approved") to legally conduct insurance business in your State.

Here is a brief look at two ways an insurance company might be registered to legally conduct business in your State. (The exact terminology may differ from State to State.)

"Admitted" - The insurance company is fully regulated under your State's "life and health" insurance laws.

"Approved" - The insurance company operates under "surplus lines" insurance laws and is not fully regulated. However, if the State obtains credible evidence of unsatisfactory claims practices or unsatisfactory financial condition, then the State may revoke the "certificate of authority" under which the insurance company legally operates in that State. Such action could influence or encourage similar action in other US States and even in other countries.

Why depend on insurance from a company that is not legally registered in your State?

7. Lower Your Premium By Electing A Higher Deductible.

The "deductible" is the amount you pay in eligible expenses before your insurance begins to pay. Most plans offer a choice of deductibles, such as $250, $500, $1000, etc. Today, most plan deductibles are cumulative, i.e. one deductible per policy period, rather than a separate deductible "per incident."

Here are 2 reasons why we normally recommend that you elect a higher deductible.

Reason #1. A higher deducible lowers your premium. For temporary plans, you save on average about 10% with the next higher deductible option.

Reason #2. In the event of a medical claim, insurance companies often request copies of prior medical records. This is to show that your claim is not the result of, nor related in any way to a "pre-existing" medical condition. In the event of a small claim, the need to provide prior medical records may not be worth your time and effort.

Remember that insurance is primarily for the big expenses, to keep you from going broke or possibly to save your life. Consider saving money by electing the highest deductible with which you feel comfortable.

8. A Higher Coverage Maximum for USA Visitors.

Temporary health insurance plans offer a choice of coverage maximums, typically ranging from $50,000 minimum up to $1,000,000 or more.

When considering Temporary health insurance, realize that medical bills exceeding $50,000 are not uncommon in today's world, especially in the USA.

Suggestion: For travel to the USA, we recommend electing a medical maximum of at least $100,000 or higher. Simply put, what good is a $50,000 policy if you require $100,000 or more in medical treatment?

TIPS TO HELP IDENTIFY YOUR NEEDS IN INSURANCE: For Long Term

Here are 8 tips and suggestions intended to help you identify the best choice for your exact needs and situation.

1. "Pre-Existing Condition" - Look at the Plan Wording Carefully.

Virtually all private-sector health insurance plans exclude coverage for "pre-existing conditions." A small difference in the wording can make a big difference in whether or not a medical insurance claim is actually paid . . . or not paid.

Here are two examples for illustration purposes:

1. Pre-existing condition: "Any condition which existed at or prior to the date the policy went into effect."

2. Pre-existing condition: "Any condition which was diagnosed, treated, or manifested itself in such a way as to exhibit recognizable symptoms, prior to the date that the policy went into effect."

Note that in example #1, the definition is very ambiguous. In this example, you could have a "pre-existing condition" and not even be aware of it. Examples might include slow growth cancer such as colon cancer. Another example might be any type of heart disease, which often goes undetected for years.

If you happened to have a health insurance policy with such ambiguous wording and came down with a major illness, you could be in trouble. If doctors determined that your illness existed in any form at the time your policy went into effect, even if you didn't have any noticeable symptoms, your claim would be denied.

Important: If you are over age 40, I strongly recommend that you avoid any insurance policy which contains an ambiguous definition of "pre-existing condition" as described in example #1 above. Even if you are under age 40, this may be a good idea as well.

2. A Recent Routine Check-Up Is Recommended For Ages 40+

For people over age 40, if you are in good health, then having your good health documented prior to becoming insured (or soon thereafter) could be of great value in the event of a significant medical claim later.

This documentation could be in the form of a recent routine physical exam. Or, it might be the records of one or more recent visits to a family doctor (for a cold or flu for example), where your doctor would have gathered routine medical information such as height, weight, blood pressure, etc.

If you do not have any such documentation of good health, then we recommend that you have a routine physical exam before, or soon after your insurance goes into effect.

Unless you are over age 60, having recent documentation of good health is usually not a requirement when you apply for most insurance plans. We make this recommendation because we work for you and in our experience, claims disputes are not uncommon. In the event of a dispute, your having recent documentation of good health helps us to help you.

While we strongly recommend this for people over age 40, we also believe that having recent documentation of good health is a good idea for everyone.

3. Who Regulates Your International Insurance Company?

In the USA, health insurance is primarily regulated by the individual States. If you are a USA resident traveling abroad or a visitor to the USA, we strongly recommend that you seek out insurance from companies that are registered (either "admitted" or "approved") to legally conduct business in your State.

Here is a brief look at two ways an insurance company might be registered to legally conduct business in your State. (The exact terminology may differ from State to State.)

"Admitted" - The insurance company is fully regulated under your State's "life and health" insurance laws.

"Approved" - The insurance company operates under "surplus lines" insurance laws and is not fully regulated. However, if the State obtains credible evidence of unsatisfactory claims practices or unsatisfactory financial condition, then the State may revoke the "certificate of authority" under which the insurance company legally operates in that State. Such action could influence or encourage similar action in other US States and even in other countries.

Note: We avoid insurance plans from companies that are not registered. All plans found here are backed by insurance companies which are either "admitted" or "approved" where offered.

4. When Comparing Health Insurance Plans, Check The "Exclusions."

One of the first things that experienced insurance agents look for in a health insurance brochure is the summary or list of "exclusions." Often found in smaller print, "exclusions" are not covered under the plan. Sometimes, what's NOT covered can be just as important as what IS covered.

Many exclusions are typical (i.e. acts of war, self-inflicted injuries, custodial care, etc.), while others are not and should be carefully considered when comparing health plans.

All comprehensive international insurance plans contain an exclusion for "pre-existing" medical conditions. You should carefully read and understand this exclusion.

5. The Health Questionnaire - "Medical Underwriting"

Long-Term, Annual-Renewable or "Permanent" medical plans are designed to provide comprehensive health insurance coverage for at least one year or longer. These plans are issued based on "medical underwriting" through the use of a detailed health questionnaire.

Personal medical history could be a determining factor when selecting a company to apply for insurance. Based on personal medical history, some people could be declined for insurance by one company, but accepted (or accepted with a medical "exclusion rider") by a different company.

Note: For the plans found here, if your health questionnaire is answered truthfully and accurately, and you are accepted for coverage, you cannot be cancelled or singled-out for future rate increases due to medical claims.

6. Activate Your Best Memory When Completing The Health Questionnaire.

It is important to remember that by nature, the human mind tends to forget or minimize past or present illness. A positive mental attitude can beneficial in the healing process, but failing to properly disclose a material health condition on your insurance application could jeopardize your coverage entirely.

A "medical audit" (obtaining prior medical records, researching medical information bureaus, etc.) is often done when there is a major claim. By contract, the insurance company can revoke coverage and return all premium if it can be shown that the policyholder failed to disclose a material condition on the application.

Never give the insurance company a potential way out of paying a major claim. Activate your best memory when completing the health questionnaire.

7. For A "Yes" Answer on Your Health Questionnaire - Note The Positives.

For every "yes" answer on your health questionnaire, be sure to give a clear and complete explanation.

Your completed health questionnaire becomes a part of your insurance contract, so it is important to be complete and truthful when answering all questions. When applicable, be sure to state the positives when giving an explanation to any "yes" answer.

If you have a condition that is well controlled by medication, give complete details. For example: thyroid, take 5mg (medication) daily, well controlled for (x) years.

If a previous medical outcome was good, clearly state so in writing. When appropriate, consider descriptive terms such as "full recovery," "no further symptoms," and "no further treatment or consultation required."

8. Lower Your Premium By Electing A Higher Deductible.

The "deductible" is the amount you pay in eligible expenses before your insurance begins to pay. Most plans offer a choice of deductibles, such as $250, $500, $1000, etc. Today, most plan deductibles are cumulative, i.e. one deductible per policy period (up to one year), rather than a separate deductible "per incident."

There are 2 reasons why we normally recommend that you elect a higher deductible.

1. A higher deducible lowers your premium. For long-term plans on average, the savings often exceed 10% on the next higher deductible option.

2. In the event of a medical claim, insurance companies often request copies of prior medical records. This is to show that your claim is not the result of, nor related in any way to a "pre-existing" medical condition. In the event of one or two small dollar-amount claims, the need to provide prior medical records may not be worth your time and effort.

Remember, health insurance is primarily for the big expenses. Consider saving money by electing the highest deductible with which you feel