All short-term insurance plans underwrite their clients after there is a medical problem. This means that they find out if the medical problem relates to a pre-existing condition, and thus exclude it from coverage. For most long-term plans underwriting is done at the point of application. One international carrier explains it like this:
“Underwriting at the Point of Application: Some of our competitors do not underwrite the business until a claim is filed. We underwrite at the point of application. Meaning if it goes through underwriting, and there are no Riders attached, the client knows that the condition will be covered. If Riders are issued, the client knows exactly what conditions will be considered pre-existing and for how long those specific conditions will not be covered.”
If you buy a “guarantee issue” plan (which means underwriting is done after you receive the medical care), you can expect a fairly long wait before claims are paid. The reason is that the insurance company will do extensive research to make sure that the medical care was not provided due to a pre-existing condition.
Remember as your portion of the co-insurance increases, your monthly premium will drop. Thus a 50/50 plan will be less expensive than an 80/20 plan.
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The information and advice on this website was deemed accurate when it was originally published. GNI cannot accept any responsibility or liability for any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. For the latest up-to-date information please call us or check brochures and other published materials for latest revision/date.