After 15 years within the Health insurance area, I can’t let you know what number of instances I get requested the query, "Why are individual health policies, so much cheaper than a similar group plan?"
Well, the reply is sort of easy. In the state of Florida, a real Small Group insurance policy is a assured subject policy. In quick, even in case you have a number of continual circumstances such a Heart illness or most cancers, the insurance company can’t deny you protection. However, you should meet all of the term of a small business, and as a way to keep away from a pre-existing clause within the policy, you’ll have wanted to have 12-24 months of prior protection. It that’s the case, then the company not solely has to subject to policy, however additionally they are on the hook for his or her portion of any claims.
In distinction, within the state of Florida, a person plan may be underrated primarily based off your medical historical past, peak, weight, zip code that you just stay in, and whether or not or not you’re a smoker. This underwriting skill affords the insurance company the power to see upfront what sort of threat you’re to them.
If they such as you and also you fall inside the tips of a most well-liked threat, then you definately profit with a a lot decrease premium. However, if you don’t fall inside their chosen tips, they’ve many choices. First, they’ll enhance the speed of the policy to a degree that they really feel warrants the chance. Second, they’ll "rider" out the elements of you physique they don’t need to insure. And final, they’ll simply flat out deny protection.