Is Person Well being Insurance coverage Less expensive Than Group Coverage?
Immediately after 15 years in the Well being insurance coverage field, I can not inform you how quite a few instances I get asked the query, “Why are person well being policies, so substantially less costly than a related group program?”
Nicely, the answer is type of uncomplicated. In the state of Florida, a correct Little Group insurance coverage policy is a assured concern policy. In brief, even if you have several chronic situations such a Heart illness or cancer, the insurance coverage business can not deny you coverage. Nevertheless, you ought to meet all the term of a compact organization, and in order to prevent a Pre-current clause in the policy, you would have required to have 12-24 months of prior coverage. It that is the case, then the business not only has to concern to policy, but they also are on the hook for their portion of any claims.
In contrast, in the state of Florida, an person program can be underwritten primarily based off of your healthcare history, height, weight, zip code that you reside in, and whether or not or not you are a smoker. This underwriting potential affords the insurance coverage business the potential to see in advance what variety of threat you are to them.
If they like you and you fall inside the suggestions of a preferred threat, then you advantage with a substantially reduce premium. Nevertheless, if you do not fall inside their selected suggestions, they have quite a few choices. Initially, they can improve the price of the policy to a point that they really feel warrants the threat. Second, they can “rider” out the components of you physique they do not want to insure. And final, they can just flat out deny coverage.