Some things to look for in an individual policy:
- Noncancellable, guaranteed renewable coverage - this means that you cannot be cancelled as long as you continue to pay the premiums and do not try to defraud the insurance company. Sometimes, insurance companies will cancel health insurance policies because the insured becomes sick, in much the same way that auto insurance companies cancel people who have too many accidents. Sadly, this is perfectly legal in many states, so find a policy which is noncancellable and guaranteed to renew each year if you can. The next best thing is to find a "conditionally renewable" policy, which means that the insurance company reserves the right to cancel all policies similar to yours, but cannot single you out for cancellation.
- A 10-day recission period - Most insurance companies will allow you 10 days to examine the policy documents carefully and decide whether or not you want this coverage. If you decide you do not like the terms of the policy within the 10 days, you can cancel the coverage and get your premium back.
- Clearly defined terms - you want to know:
- What is covered
- What is not covered
- When the coverage begins
The level of coverage available under individual health insurance policies varies widely, and you will have more options available to you because your employer is not preselecting certain types of plans for you to choose from. Thus, it is especially important that you understand all of the terms of your individual policy. If they are not clear to you, ask your agent and/or the insurance company to explain them. You do not want to wait until you are sick to discover that your policy does not cover the services you need!
