"The movies are the only business where you can go out front and applaud yourself."Will Rogers
|
| |
Health Insurance; COBRA; OBRA; HIPAA; Medicare; Definitions, Relationships
Health Insurance; COBRA; OBRA; HIPAA; Medicare. If asked, could you state that you knew that all 5 of these topics had the same thing in common: medical insurance coverage for you and, perhaps, your family? Would you know the qualifications for each? ...
Life insurance fears following the London bombings tragedy
Following on from the tube train and bus bomb attacks in London there was a move from several UK insurance companies to reassure victims that claims would be processed “quickly and sympathetically”. This need for reassurance came in light of concerns that ...
New Car Registrations and Car Insurance
In September 2001 the Driver and Vehicle Licensing Agency (DVLA) introduced a new number plate registration system that was designed to last for 49 years. The new change was welcomed not only by the car dealers but also by the car insurance industry as ...
|
|
|
| |
Although insurance companies offer peace of mind to the policy holders, it is important for all customers to remember that they are for profit companies, and accordingly your own personal interest is not their number one priority. Consequently, any insurance company will capitalize on every opportunity to extract money from its customers. The primary source of income for an insurance company is the premiums which it levies from its customers.
The premium is the fee which keeps the insurance policy alive. Each company collects the premium on a regular basis. The policy holder is expected to pay the premium on time. Delayed payments may lead to consequences such a fine or even termination of the policy. If a lapse in your payments does take place, this will render the earlier premiums paid by the policy holder useless. So, in order to reinstate oneself, the policy holder might even have to renew the entire policy.
There has also been a recent trend of policies being sold at inflated prices by a few agencies. Some of these companies that claim to be consulting organizations fail to ask important questions such as salary and mortgage details that are essential to assess the appropriate cover. So, an ideal solution to this problem would to make selling of insurance more transparent. But like all practical solutions, it is not in everyone's interest to do so. As a result, insurance companies have lobbied congress men and women very heavily to ensure that despite the benefits of transparency, obscurity remains the law.
Another problem with insurance that is often never disclosed by sellers, is that the insurance premium is also very unstable. The rates may even change between consecutive billing cycles. For example, a driver with a recent accident history will have a pay a much higher premium than a regular driver. Such a driver will be left with no other option but to pay a high premium, since insurance has been made mandatory for driver in many states.
Insurance premiums are also very relative. They are based on extensive research and statistics. For instance, a policy holder who smokes might have to pay as much as twice the amount paid by a non-smoker. Some companies also have a provision wherein the premiums are reduced if the policy holder changes his habits. However, evidence based on medical tests will have to supplement this argument. Premiums may also fluctuate according to market trends.
As stated previously, it is not always in the best interest of the insurer to be up front with you regarding the many pitfalls which surround the purchase of insurance. However, by understanding not only some of the omissions as well as grasping the underlying motivations of insurers customers can be must better situated to make good decisions regarding their insurance needs
About the author:
Marcus Dubois is a veteran in the insurance industry, and recommends InstaQuoter to get an instant insurance quote.
|
|
|
|
|
|
 |
Health Insurance Cutbacks Squeeze The InsuredNPR (blog)A healthy 5-year-old son, a house in Riverbank, Calif., and health insurance from her job in the accounting department of a small manufacturing company. "We were in a conference room getting the information and I had heard rumors but didn't know if it ...and more » |
|
