Health Insurance Answer Guy
Health Insurance
Never's...
In your quest for individual health insurance for you and your family, there are many mistakes you can make that I'd like to help you avoid. Never settle for a "one-line agent". Better yet, why would you? Never respond to solicitation advertising received by mail, email, phone or fax. Never talk with an agent on the phone without your list of questions. You've only just met this person or spoken with them on the phone. You have that queasy feeling in your stomach that they are going to try to talk you in to something you don't want. You're going to be spending thousands of dollars with someone whom you don't know and may never see again. You don't trust them and you haven't even met them yet. You don't know anything about their product and you're hoping this person to gives it to you straight. You need what they have and you're going to buy it from someone anyway. AND... last but not least... You hope you're not going to have to spend more than you can afford to get what you want. Okay, I know it's kind of a stretch, but you get the point. This is one of the best things about this site. You don't have to put up with any of this! Never accept as fact anything a health insurance agent tells you without verifying first.
If you already have a health insurance agent you're happy with, that's great. Once you find an agent you can trust, stick with them. There are many, MANY "take the money and run" agents, but very few who take the time to really get to know you, your family, and your needs. Once you've found that person who's in it for the long haul, hang on to them.
Don't fall in love with your health insurance plan... fall in love with your agent. A good one is your friend, and will keep up with the many changes that seem to happen daily, but definitely happen yearly, within the health insurance industry.
Here is the only thing I'd caution you about with your health insurance agent... are they a "captive agent"?
Captive agents are stuck with one product line. This agent may have awesome products, but It's their insurance company's products or nothing. The price is the price. You pay what you pay. It may very well be great health insurance, but you can probably obtain better coverage at a lower, more competitive premium, by using a broker.
Health insurance brokers work with multiple product lines. They have the freedom to mix and match to get you to where you need to be with both your coverage and premium. They have many outside products to offer you that actually compete against each other for your business. This keeps the pricing much more stable. A total benefit for you and your family.
Solicitation
I know you've had your day interrupted at one time or another with some type of health insurance solicitation... right? C'mon, everyone has. Besides the fact that it's extremely annoying, you now have the tools available to research your health insurance agent, agency and health insurance company using the State data links page. You can purchase health insurance whenever you want.
An unsolicited fax or email is against the law. These agents know they are breaking the law when they send them out to you, but obviously that doesn't stop them. So, how do you like that for a first impression, and what does that tell you about that health insurance agent?
Screening phone calls from health insurance agents
If you are actively looking for health insurance, you've probably received more phone calls than you can count from health insurance agents all across the nation. Really.... they call you from everywhere!
Hey, bring 'em on.
Before, you had no way of sorting out these phone calls. You probably liked or disliked the person based on their comfort level on the phone or their phone skills.
But believe me, most agents are more nervous than you are to make a phone call than you are to receive a call. They call it the 1000 pound phone syndrome.
Most agents dread making phone calls in fear of being rejected. They won't pick up the phone because in their mind it might as well weigh 1000 pounds.
Does this kinda change the dynamic a little for you in terms of talking with them on the phone? Imagine how empowered you'll feel with your list of questions. You will immediately have control of the conversation.
Verify everything!
As I've said all along, most agents are in it just for the money. Some care about you more than others, but I'd say the best analogy is that of a car salesman. Yep, you heard it here first... a car salesman.
Think about it...
You can handle everything from your phone. Just have your list of questions handy when they call and you are in the drivers seat. Write down everything they tell you, then verify, verify, verify through your State data link.
Never again will you have to worry about someone talking you in to buying their health insurance. You'll know before you get off the phone whether you want to do business with this person or not.
*The biggest NEVER of all...
Many agents are paid based on what they initially bring in to the company, so it ONLY benefits the agent for you to pay for everything upfront.
Your broker may tell you about "substantial discounts" associated with paying quarterly, semi-annually, or yearly, but don't write that check for the full amount now. You can always take care of that after you've been approved... here's why.
The health insurance company earns interest on your money.
During the underwriting process the insurance company earns interest on the money given them. Why give them your hard earned money all at once? It's possible that the insurance company might have to return it anyway. Depending on circumstances, the insurance underwriting process can take from a few weeks to a couple of months.
If they have to return your premium it can take up to 30 days. This means they may have your money for up to 3 months. Why not earn interest on that money yourself until you know you've been approved? Otherwise, they are the only ones who benefit.
REMEMBER THIS ALSO...
Some online health insurance companies do not charge an application fee and do not require payment until you have been approved! Ask your broker about this. It's all about asking questions.
Want a premium discount?
Many health insurance companies offer very meaningful discounts if you are willing to pay for their services upfront. Some discounts can add up to a savings of more than a free month per year! But, don't let the insurance person talk you in to paying for everything while you are all sitting at the table.
You haven't even been approved yet!
You will have ample opportunity to pay off that quarterly, semi-annual, or annual balance when the policy is delivered to you and you are within your “Free look – no obligation period” (this period differs by State). Ask your broker about this.
Pay the premium balance after you're approved.
Some companies "claim" to offer the discount only if you pay upfront, at least that's what the agent tells you, OR within the "free look" period. But, most companies actually want to KEEP you as a customer (a little sarcasm). So, even if you missed this window of opportunity (paying the agent upfront or paying the balance after policy delivery), if you threaten to cancel your policy and demand a refund they will normally comply. If not... hey, there's always another one that will.
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