Health Insurance Cancellation Miami FL
Reader’s Question:
My health insurance company retroactively cancelled my health coverage. I would like to know if this is legal or not in Miami?
Mary
Miami, FL
Thanks for finding out, Mary.
It would help for you to be reminded that health insurance coverage in Miami is not an absolute guaranteed of protection from financial difficulty in case of illness. There are cases of consumers who had health insurance retroactively cancelled upon diagnosis of a serious illness which left them with thousands of dollars in uncovered medical expenses. Technically, that is not allowed in the federal law, but only if the consumer has committed fraud. Fraud refers to a sort of misrepresentation during the application process, such as omitting important facts or deliberately lying on the application form.
Most health insurance companies in Miami invoke that they solely rely on the policyholders to fully disclose all potential health problem so that they will be able to decide whether or not the applicant shall be granted health insurance coverage, and at what premium rate. If and when the policyholder will be diagnosed of a serious or terminal illness later on, the health insurance company will conclude that the policyholder committed fraud during the application process because there was nondisclosure of the illness from the start.
Health insurance policyholders of these cases however contend that this is and honest mistake, such as misunderstanding of the diagnosis or medical conditions that has long been cured. There are already many cases filed in court of fights against retroactive cancellation, and results of such lawsuits are still pending in great numbers. Although, rarely does it happen that health insurance coverage is cancelled…maybe less than .5% each year.
So is there any remedy to avoid such? Full disclosure, even of cured illness, needs to be done from the very beginning.
Life Insurance Question Miami FL
Reader’s Question:
I work as an aircraft maintenance crew. Although I am not always on a flight, my occupation is classified dangerous which disqualified my life insurance application. I am planning to re-apply, this time with another life insurance company in Miami FL. Should I conceal my occupation? I teach as a second job and I’d rather declare that.
Peter
Miami, FL
By all means, don’t even think about lying, Peter.
There are cases of life insurance policies which were cancelled due to misrepresentation. Let’s say, you will pass during your interview and screening, but if the life insurance company will find out in the future, when you have paid enough premiums to secure your beneficiaries, your life insurance policy can be cancelled and the company will not be obligated to pay you any sum due to fraud and misrepresentation.
Aside from your current occupation, which is classified to be dangerous, you also need to disclose information about your activities, like skydiving which is considered a dangerous sport. These kinds of information are vital to the life insurance policy in determining not only if you are insurable or not, but also the rates they should give you if you can be given coverage.
Are you uninsurable then because of your occupation? I’d say you still are. You can ask from your employer because there are life insurance companies that offer insurance to dangerous occupations. Of course, unlike the ordinary life insurance, the rates for such will be relatively higher.
Always remember that you need to be candid and truthful during your application for a life insurance coverage in Miami FL. You don’t want your family members, who are your beneficiaries, to be robbed off of their benefits when you are gone.
Cheap Term Life Insurance Miami FL
Reader’s Question:
My insurance agent here in Miami FL told me that term life insurance policy is the cheapest insurance policy in the market. Is it true? If so, why? What are the disadvantages and advantages?
Cindy
Miami, FL
Thank you for asking Cindy.
Yes, term life insurance is the cheapest life insurance policy you can buy in Miami. It is a cheap life insurance since this policy covers you only for a period of years. Term life coverage ranges from 5 up to 30 years.
Unlike other types of insurance policies, term life has no cash value. It doesn’t accumulate any cash value over time, the reason why it remains to be the cheapest insurance policy you can buy.
Although it is a cheap life insurance, it has its disadvantages. The price of term life insurance policy may go up sharply at the end of the term. It will keep going up every year as it will become annual renewable, unless converted to something else. Insurance companies allow you to convert a term to anything they have but your premium will have to be adjusted to your age. No matter what you do, the price of term life insurance will go up over time. If your health changes, you might end up unable to purchase a new policy from any other insurer.
But because it is a cheap life insurance, you might be able to enjoy many riders with this type of policy.
Miami FL Life Insurance
Reader’s Question:
I am about to purchase a life insurance policy in Miami FL. What happens to my life insurance policy if I become disabled? Should I get coverage for my spouse and children too?
Mike
Miami, FL
Most life insurance policies include an optional rider that provides a “waiver of premium” for total disability. In the event that you become disables for certain period, typically 6 months or longer, most insurance companies will pay your premium for you until such time you are no longer deemed disabled.
It is a very good move to get coverage in Miami FL for your wife and children. Even if the deceased was not earning an income, loss of a spouse can bring significant financial strain to a family. Most often than not, the surviving spouse usually takes time off or changes jobs to be able to spend more time with the children. By getting coverage for your children, you policy will be able to cover final expenses and can guarantee insurability of your children’s future and immediate needs in case something happens to you.