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September 12th, 2011It is always hard to budget monthly income especially if there are so many expenses
to fit into. Say for example your health insurance premium. That is why, before purchasing insurance, consumers always take a closer look in the coverage and weigh-down their option to find the best insurance fitted for them, especially with their budget. For some, buying private health insurance is a best option for budget minded individual. Health insurance from your employer or company may not be enough.
With the uncontrollable increase in insurance premiums annually, private health insurance may be a best way to save money. However, given that it’s less expensive, switching to a private insurance from company insurance may drop down your insurance coverage and protection. The difference may include:
Guaranteed issue – Regardless of your health status, if your company offers you a health insurance, you along with all other employees under your employer will be accepted for coverage. You cannot use this advantage through private insurance.
Guaranteed renewability – If suddenly become ill or sick, you are guaranteed to renew your insurance regardless if your still working or not with your employer.
COBRA – COBRA is a 1986 federal law known in the United States which states that an employee that is laid off from a job from an employer with more than 20 employees are allowed to have the option to continuing paying his/her insurance premiums and still be covered for the health insurance in an extension of 18 months. Unfortunately, COBRA is not available in private insurance.
As we have said, private plan is different from an employer-based insurance plan. So you might need to review and understand the benefits and limitations of both before making any commitments.
Important! Since you are planning to switch and are making the necessary works to move to a private health insurance, and therefore waiting for approval of the plan. While still waiting, never cancel any existing health plan until notice and approval of the contract will be sent to you. You’ll never know if you will be accepted or not. And what if an accident happens and you need immediate medical assistance, you’ll be very unfortunate because you have already canceled your existing insurance plan. However, if you are under another health insurance and you suffer from serious medical condition, it is best to keep your existing health insurance rather that switching to another one. Because you are most likely to be decline for approval.
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