Honesty Is The Best Policy
When you buy your own medical insurance, you have to answer a lot of health questions. Why the
third degree? Your insurer wants to know how much they might have to pay out in doctor’s
fees, prescription costs and hospital expenses to cover you. This estimate determines how much
your premium is going to be.
It’s understandable that people want to “stretch” the truth a little when talking
to their agent. They don’t really need to know about the time I threw my back out,
right? And besides, will the insurance company ever find out?
The truth is, they might not. But you shouldn’t risk it.
Your Permanent Record
These days, computers are keeping track of everything. You phone number, your address,
where you went to school, what your last job was… all that information is in a computer
somewhere. Scary as it seems, your health information is in there, too. And insurance companies
can find it.
If you intentionally lie, leave out information, or “misrepresent” your health status,
the insurance company can deny claims — or revoke your policy. One California woman had
her policy revoked because she didn’t tell the insurer about medical treatment she’d
gotten as a toddler. She claims she didn’t tell them because she didn’t remember.
They claim that she misrepresented herself when she applied for insurance.
That doesn’t mean that the insurance company is going to check every detail of your history.
But they can check the accuracy of your application.
Why It Pays To Be Honest
Every story has two sides — so make sure you tell yours in detail. On paper, your medical
history might look bad. But your health status might actually be pretty good.
When applying for insurance, let them know all the details. If you’ve been successfully
treated for a condition, tell your agent. You’ll get a better rate than if the insurer just
looks in your file and sees that you had the condition.
You “should think about it from the
side of the insurance company,” says Robert
Hoyt, the chair of the risk management and insurance program at the University of Georgia. “To
the extent you give them good, complete information and reduce the uncertainty,
then ultimately you’re going to get a fairer price.”
If you’re worried that your medical history could mean expensive premiums, don’t
go apply directly to a large insurance carrier. Throwing all your eggs into one company’s
basket can mean paying too much in premiums, or even having your application rejected.
And a rejection will likely show up in your record, and mean higher premiums at
the next place you try.
Instead, go to an independent agent. They work with many companies, and
they can look around for the best deal. They know which carriers will have the
best plans and rates for someone with your medical history. They’ll point you in the right
direction, and get you the best price they can.
And when you go in to talk with your agent, remember:
just the facts, please. |
