As the holidays ramp up, many people put off planning for 2012 – thinking, “I’ll get to it in January.” If that describes you, then re-think that one. Today would be a good day to apply for coverage beginning on January 1, 2012. Why?
Most health (and other types of) insurance policies do not go into effect immediately. Rather, underwriting can take weeks to complete. Many health insurance plans won’t go into effect sooner than the first of the following month.
Major medical deductibles are usually based on a calendar year. Synchronizing your policy with the calendar year can simplify tax issues for those who are self employed, and can avoid instances of paying back-to-back deductibles should you be switching from another company. If you’ve met your CY deductible with your current carrier, then you likely do not want to consider switching mid-year.
Besides, underwriters will not look favorably upon unresolved medical issues on your application. As much as it should not need to be said, the importance of being honest on applications can’t be overstated. Most health insurers will not incur the hefty expense of pulling attending physician statements (APS) just to underwrite an application. However, they just might do so in the course of reviewing a significant claim. If the APS indicates that the medical issue existed but was not stated at the time of application, then there will be no coverage for the claim. Ouch! But it makes sense if you think about it.
Back to the present opportunity – apply now to get all your options on the table before festivities consume your time. Online applications process much more quickly than paper. Applying for major medical insurance online costs only time – no payment is required. Even though the application process asks you to choose a particular plan (deductible, etc.) do not worry about that step. Upon underwriting the application, the carrier will generate an offer letter that lists all the applicable plans and the premium. The offer letters give the last set of information needed to engage the process of choosing your specific plan. As independent agents, we’ll help you.
Receiving offers early also arms you with budgeting information you’ll want as you consider other 2012 costs, including paying off holiday bills!
