3 Ways Your Health Insurance Company Is Scamming You
The growing number of consumers taking up health insurance plans has led to the mushrooming of scam health insurance providers. These providers often target new retirees and the elderly individuals and small-business owners, who can’t negotiate better rates with legitimate insurers. Be very cautious before you invest in any health policy. Read on to get an idea about 3 ways in which your health insurance company can scam you.
1. Failure to pay claims
Usually fraud health insurance agents sign up a huge number of people quickly by offering them lucrative deals. These insurance providers keep paying small premium amounts and medical claims, but if there is a substantial claim amount or regulators catch them, these illegal companies vanish as if they never existed.
So, just beware if you are getting delayed payments or your service provider is offering fake excuses for the failure to make the payments. If you have signed up for these illegal plans, you may be liable for the medical bills of your employees as well.
2. Non-licensed health plans
If the company from which you have bought your health care policy is not licensed by State Insurance Commissioner, you can be in trouble. If all the protections of insurance regulation do not apply on your service provider, then the company may be phony. In this case your service provider is scamming you by selling non-licensed health plans.
Insurance agents are not allowed to sell any legitimate ERISA or union plan as federal law governs them. So, if your insurance agent tries to dupe you by selling an “ERISA” or “union” plan, report them to your state insurance department.
3. Unusual coverage offered at lower rates
If you are offered an unusual coverage irrespective of your health condition and that too at lower rate and much more benefits in comparison to other insurers, its time for you too hit the panic button. Do not get fooled by the lucrative offer, else you can be taken for a ride. The ‘scamsters’ aim to collect huge amounts as early as possible so, they try to sell maximum number of policies at attractive prices.
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Inflation can essentially take the “muscle” right out of your future purchasing power. It may similarly affect your life insurance, triggering the need for additional coverage to help protect your current lifestyle and future objectives. In the interest of protecting against the eroding effects of inflation, here is a quick look at three common reasons to strengthen your life insurance coverage:
Home mortgage costs. The days of staying in one home forever may be long gone. Americans seem to be constantly on the move—perhaps the increased mobility may stem from factors such as greater employment opportunities, dual incomes, and changing family dynamics. These factors may be contributing to today’s growing trend of purchasing “more” house than in the past. Likewise, escalating real estate prices have translated into larger mortgage loans. So, if you have recently purchased a home, you may consider obtaining additional life insurance to help cover your new mortgage.
College tuition bills. If you are planning on sending your children to college, you may be concerned about the rising costs of higher education. For the school year 2006–2007, the average annual cost of a four-year private college increased 5.9% from the prior year to $22,218. The average annual cost for a four-year public school was $5,836, which increased 6.3% from the previous year (The College Board, 2006). Because of rising costs, it may be prudent to develop a contingency plan, such as utilizing life insurance in the event of an untimely death. Having this coverage in place can help ensure the educational funding will be there for your children even if you’re not.
Everyday expenses. Groceries. . . gas. . .movies. . .family vacations. . .or home improvements. Whatever the outlay, inflation will greatly affect the costs associated with maintaining your family and lifestyle. And, if your life insurance needs are based on your current income and today’s cost of goods and services, you may potentially short-change your family’s future. Your insurance strategy should include an assessment of both your current and future needs, as well as objectives to help you manage these expenses.
Staying Ahead of the Game
Determining your current and future life insurance needs may require you to pay careful attention to inflation and its potential effect on your lifestyle objectives. You may want to consider battling this erosion factor by reviewing your insurance coverage annually to help ensure your life insurance policy remains a contender in the continuous fight against inflation. Obtain free term life insurance quotes at http://www.termco.com.