We're going to go off the beaten path for a moment and use a personal experience to illustrate why it is important to read your insurance policy....or at least know what questions to ask your agent!
This might seem a bit complicated, but bear with me and I'll do my best to paint a clear picture. I had a "spouse" health insurance policy with my husband that was paid for by his employer. As things go awry as they sometimes do, we were divorced. However, he did not cancel my health insurance policy after everything was final. Being as I was not the policy holder, I could not cancel the policy myself. So, I called after the first of each month to verify coverage, and each time I was assured that the policy had been paid and was active. After about four months of doing this I received a collections letter from the company wanting to be reimbursed for claims they paid. When I called to question it, they informed me that they had received a letter requesting my policy be cancelled, not on February 26th when they received the letter, but on December 31st of the prior year!
Later investigation revealed that many health insurance companies allow employers to retroactively cancel a policy back 60 days. You didn't know that, did you? Neither did I! Maybe I should have read my policy a little more closely? To be honest, I actually found the statement under the employer's rights, not in the employee handbook. However, this ordeal brought on greater concerns than being charged for claims during those two months.
What if I had been diagnosed with a serious medical illness in those two months I was without coverage? Not only would I have been required to pay back all the claims, but I would also not be able to find other coverage as I would have had a preexisting condition. Now THAT, is scary. I asked the insurance commission about it, and they advised that if this had happened, I could sue the employer for terminating coverage. Can you imagine suffering through chemotherapy and trying to concentrate enough to get your ducks lined up in order to sue someone?
I am sharing my story with you because I can't stress enough how important is is to read your policy! I know it's usually written in a language that most of us don't understand, but that's why we have agents. They can translate your policy for you (for any kind of insurance) so that you can rest assured you are protected. If you're ever in doubt, just ask. There is no such thing as a stupid question......unless you don't ask it! I know I learned my lesson!
Take care out there!
Erin Schuster
ABOUT FAMILY INSURANCE
Phone # (405) 329-9780
Fax # (405) 823-6917
http://www.gotomypolicy.com
paul@familyinsu.com