An Essential Step to Lifelong Health: Long-Term Medical Insurance
Long-term health insurance is essential for everyone in this era by providing an opportunity for investment in personal health to be financially secure at later stages of life.
Thanks to technological advancements and nutrient-rich diets, the average life expectancy of our generation is getting much longer.
Yet, extended lifespans do not equate to a better quality of life. This is especially true for those who have to deal with conditions that require long-term medical treatment. The last thing anyone wants is having to battle a disease and deal with hefty medical bills later in life.
The beauty of insurance is that it can transcend time and protect you from such financial difficulties – provided that you’ve secured a proper insurance policy early. It is no exaggeration to say that a stable long-term health insurance policy is one of the best investments you can make when you are young.
Why Should We Consider Long-Term Health Insurance?
It’s important to keep in mind that not all health insurance policies in the market can stand the test of time. While the right insurance plan can serve you for the rest of your life, an ill-fitting, unstable plan can leave you stranded with more problems.
With this in mind, we have released our latest Guide to Obtaining Long-Term Health Insurance to answer some commonly asked questions on this subject, such as:
- Why should you purchase long-term health insurance?
- What is the downside of purchasing insurance policies in old age?
- How do I identify long-term health insurance that suits my needs?
- How important is portability when considering long-term health insurance?
- Where do I find an insurer’s history of premium increases?
What is Long-Term Health Insurance?
We define long-term health insurance as the act of securing coverage with the intention of maintaining it for a long period. Most insurers renew their policies annually, and policyholders can switch companies at the end of the policy year.
Sticking with the same insurer is usually the most cost-effective approach. This is because switching insurers frequently will in most cases cost you more as a policyholder in the long run.
Pre-Existing Conditions Coverage
As mentioned above, the major downside to switching insurers too frequently is that any health conditions you have developed with the previous insurer will most likely be regarded as pre-existing by the new insurer, and thus excluded from coverage.
And even if you manage to find an insurer lenient enough to cover you, the plan will come with a loading, which means a higher premium. Moreover, you might need to devote extra time and money, and suffer from mental pressure in your quest of finding an insurer that will cover those conditions.
10 Criteria for Finding the Best Long-Term Health Insurance
We’ve covered the importance of getting insured as early as possible, but there are also several other points worth noting as well. For example, in some cases, insurers might reject the policyholder’s renewal request due to expensive claims or new conditions developed during the policy period.
This brings us to another important point – how to select quality long-term health insurance. Below are 10 criteria for finding the best long-term health insurance.
1. Benefits vs. Price
Price should not be your sole concern as the cheapest plan is not necessarily the most cost-effective one. In fact, cheap health plans tend to be lacking in many areas, such as limited provider networks, low benefit limits, and many exclusions, in order to compensate for the ‘affordable’ premiums.
2. Quality of Customer Service
The quality of customer service makes a difference especially when it comes to submitting a claim or requiring emergency support. Larger insurers are more resourceful, and hence are more likely to satisfy your needs.
3. Insurer Recognition
If you are admitted to a hospital, your insurer will issue a Guarantee of Payment (GoP) to ensure that they will settle your payment. However, the hospital may reject the GoP if they deem the insurer untrustworthy.
4. Underwriter Identity and Legitimacy
Underwriters evaluate the risks of potential clients and determine whether to insure them or not. Check to see who the underwriter is. A reputable underwriter can help you avoid problems further down the line, such as the inability to renew your policy.
5. Insurer’s Market History
Insurers with a longer history tend to be more sizeable and stable, and thus are less likely to run into profit issues.
6. Number of Insured Members
A large number of insured members can indicate that the insurer is more stable, since there is a larger pool to share the risks and defray the medical costs of the less healthy.
7. Portability of Plans
Most international plans allow you to receive treatment virtually anywhere on the planet. Policyholders can also opt for higher-quality medical facilities.
8. Premium Increases at Renewal
Some insurers might impose sudden, erratic premium hikes. Therefore, it is important to check out our recently released Cost of Health Insurance Report 2023.
9. Factors of Premium Increase
While a premium increase during policy renewal is somewhat inevitable, you should figure out what factors insurers will consider when increasing premiums. For instance, some less stable insurers might do so simply owing to the number of claims you have made previously.
10. Broker-Insurer-Customer Relationship
Large-scale and reputable brokers, like Pacific Prime, can take advantage of their influence with insurers to streamline the claims process for their clients.
Download Your Guide to Long-Term Health Insurance
As medical costs continue to rise, it stands to reason that you should secure a long-term health insurance plan as early as possible.
If you have any further questions, our team of specialists are always on hand to answer them. We possess over 20 years of experience in matching clients’ specific needs with the best insurance plans. Contact us today, and get a free quote and plan comparison!
If you are also concerned about your future health and want to dig deeper into the subject, look no further. Our Guide to Obtaining Long-Term Health Insurance is your perfect read. It encompasses a wealth of useful information in an exhaustive, yet easy-to-digest way.
His expertise encompasses a broad range of areas including international health insurance, employee benefits solutions, motor insurance, life insurance, and various other forms of general insurance. This breadth of knowledge enables him to distill an array of complex insurance concepts into a series of progressive, easily understandable articles.
Anthony earned his Bachelor of Arts degree from Lingnan University, majoring in Translation and minoring in English. He also studied at West Virginia University in the United States as an exchange student.
When he’s not working, Anthony can typically be found on the badminton court, in the gym, or at the theatre.
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