Individual and Family Health Insurance

Individual coverage is typically more difficult than qualifying for a group plan; policies are individually underwritten, which means that the insurance company will closely scrutinize your complete medical history.

Health insurance companies are for-profit entities. Therefore, if you already have a medical condition, they may refuse to insure you – or they may put a "rider" on your policy that will not pay for that pre-existing condition. That's why the best time to apply for insurance is before you have medical problems.

If you have chronic health conditions, you can be denied coverage regardless of the number of years during which you had continuous coverage on the job. With certain ailments, such as heart or blood vessel surgery, insulin dependent diabetes, renal disease, and most types of cancer, no one will give you insurance at any price. If you are with a group and have had any major health issue for which you receive continued monitoring or advice, you need to research your options very carefully before leaving the group.

It pays to be truthful.

When you apply for coverage, be sure to disclose any medical problems you've had, no matter how insignificant you perceive the problems to be. If you don't, your policy may be rescinded ." If you've been a victim of rescission, your insurance company has received a claim from you, and then – after reviewing your application and medical history for undisclosed conditions or inconsistencies – has cancelled your policy at a point when you needed it most.

So if an agent tries to "help" you by omitting any of your health history, they aren't really helping you. They are just trying to close the sale. Buyer beware.

Buy only what you need – but do buy.

It sounds dire, but it's essential that you have health insurance for you and your family. More than 60 percent of bankruptcies in the United States are the result of medical bills. Sadly, if you're self-employed, you could be one major illness away from bankruptcy or losing your business.

In addition, over a recent six-year period, an estimated 137,000 Americans died due to a lack of health insurance. They either received too little care or received that care too late.

Learn how to manage your risk. Decide how much debt you can manage should a serious illness occur, and consider opting for a high-deductible policy. You'll pay for all your normal medical bills out of pocket and rely on your insurance only in the event of a catastrophic illness.

Additional Resources

You need to have enough life insurance to protect the ones you love. It is very easy to apply and premiums have been greatly reduced over the years. You can get $150,000 without even a medical exam.

Is there cancer in your family? You should consider protecting your family against loss due to cancer treatment with cancer insurance.

Accident Insurance will give you a cash payment in the event of an accident. It covers loss of limbs, sight, and more. Worth considering if you have a dangerous job or young children who play in sports or accident prone.

Hospital indemnity plans pay you in addition to your insurance if you need hospitalization. These are usually very inexpensive and can go a long way in helping you meet a high deductible.