Individual Health Insurance Coverage

By: Kent Pinkerton

It is often said that independently purchased individual health insurance should be a last option. Five percent of insured Americans have individual plans even though they are costlier than group policies because they are not subsidized. Five percent are students, people working at places without group insurance or people who have lost their jobs.

Individual insurance and group insurance have different laws regulating them. Stipulations vary from state to state. Therefore, your access to individual insurance and the conditions there of would depend on the where you live.

Choosing a seller of individual insurance coverage is not always easy. Fifteen percent of applications received are left unprocessed or rejected. Those companies who are willing to accept individuals place them in a category with those of the same health status. The same premium would apply to all.

There may be elimination riders. This means that a pre- existing medical condition may be exempt from the coverage, or an additional fee to cover pre-existing medical conditions may be applied. Many people opt to not cover pre-existing conditions.

Often, all that is covered by group policies may not be covered in individual policies. People with a serious illness may not be accepted. However, many states have alternate arrangements for these individuals. Blue Cross, Blue Shield and other companies are assigned the role of "insurer of the last resort" by a number of states.

Individual insurance policy does not mean that it applies only to the person who buys it. The product is available for a single individual, for a single parent and dependant children and for families. Whatever the case, study all aspects carefully to make sure that you have coverage that is best suited for you at a reasonable cost.

If you are fifty years of age or over, check the plan offered by the American Association of Retired Persons (AARP).

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