I recently sat down for a coffee with a guy who oversees the healthcare department of a leading insurance provider and we ended up discussing some of the major issues affecting the industry. The one which he found most pressing was the issue of employees leaving a group health insurance scheme they may have been part of for a long time.
If a person leaves a company then their coverage under a group scheme terminates. The same applies to their spouse and children if they too are covered under the plan. What’s the problem you may ask? They can simply join a new plan.. Right? The following article looks at some of the key things we discussed about leaving a group health insurance policy.
Why leaving a group health insurance policy can create issues
Unfortunately it’s not always so easy to just join a new provider. Why you may ask?
Acceptance Age
Leaving a group health insurance scheme is common when people retire. Unfortunately, at this point many are older than the acceptance age for new applicants into schemes. This can drastically restrict your choices when it comes to finding a new provider. Depending on your age, it can even mean you will not be covered at all.
Pre-Existing Health Issues
Another pressing issue is regarding pre-existing conditions. Most group schemes cover people and disregard medical history, meaning your pre-existing conditions are covered. Such luxuries are not afforded to individual applicants. This means that if you leave your group scheme, the chances are you will no longer be covered for pre-existing conditions. The only way to protect yourself from this happening is to run a top up policy along-side your work plan.
How should I plan ahead?
How can you prepare for this and make sure you are not left in limbo should you leave your company?
If you are approaching retirement then plan ahead. Running a top up policy in the background with a high excess will mean you do not miss the cut off age for joining a new plan. Whats more, any conditions you develop will be covered after retirement if you are already on a plan.
If you are planning on leaving your job, then prepare ahead of time. Research products, find out if there are any waiting periods, and get your plan active well before you leave. By doing so you can avoid the problems which could occur if you get sick during any waiting periods which may be in play upon joining a new policy.
For more info on planning for either retiring or leaving your job contact info@seek2insure.com
