Health insurance is an important part of your life, but it can be confusing.
You know you need health insurance like Texas needs air-conditioning in August.
Hang in there, we have another scorcher of a month to get through before we can sniff 80-degree days in October.
It's no surprise some of the questions you have about health insurance may keep you wondering what policy is right for you.
For instance:
- Concerns about medical history and denial of coverage
- Desire to keep premiums low while not sacrificing the quality of the coverage
- Deductibles and Co-pays associated with your plan
Those questions are fairly common.
You only compound the initial confusion with additional queries like these:
- What is Guaranteed-Issue Insurance?
- What is Underwritten Insurance?
Never fear. Insurance For Texans is here to smote the jargon and lead you to the other side of comprehension.
That's True Texas form and we aim to keep it that way.
Guaranteed-Issue or Underwritten - What Is the Difference?
Underwritten insurance plans are those in which the insurer considers the applicant's medical history and other information before deciding whether to issue a policy and what premium to charge.
In contrast, guaranteed issue plans must offer coverage to all applicants, regardless of health status, and may charge only limited variation in premiums based on age, tobacco use, and family size.
Guaranteed-issue insurance can be a good option for people who are healthy or have few health problems.
You won't need to answer any medical questions, and approval usually happens within days instead of weeks with the underwriting process!
There are a few key differences between underwritten and guaranteed issue health insurance plans that you should be aware of before you purchase a policy.
Underwritten
Underwritten plans will generally have lower premiums than guaranteed issue plans since the insurer can select only those applicants who are likely to have llow healthcare costs.
However, this also means that people with preexisting medical conditions or other risk factors may be denied coverage or charged significantly higher premiums.
Guaranteed Issue
In contrast, guaranteed issue plans must offer coverage to all applicants, regardless of health status.
This means that premiums will be higher on average since the insurer cannot deny coverage or charge higher rates to those with preexisting conditions.
However, it also means that everyone will have access to coverage, regardless of their health status.
Finally, it's important to note that underwritten plans may not be available in all states. In some states, insurers are required to offer guaranteed issue plans, so if you're considering an underwritten plan, be sure to check whether it's available in your state.
Which Is Right For You?
If you're healthy and don't have any preexisting medical conditions, an underwritten plan may be a good option for you, as it will likely have lower premiums than a guaranteed issue plan.
However, if you have any health concerns or risk factors, a guaranteed issue plan may be a better choice, as you'll be guaranteed coverage regardless of your health status.
We're glad to help you figure out which plan type will serve you best today and into tomorrow.
No matter which type of plan you choose, be sure to shop around and compare premiums, benefits, and coverage levels before you purchase a policy.
If your insurance agent can't shop around, then that is a problem and you should consider an independent insurance agency like Insurance For Texans.
Stay covered, Texas (and hopefully inside with air conditioning).
Ron Wadley is an owner and General Solver of Problems for Insurance For Texans. Ron is a resident of North-East Tarrant County in the Dallas-Ft Worth area. He loves riding his many bikes and watching his Baylor Bears play football and basketball. Send him your insurance questions at ron@insurancefortexans.com.