FAQs - Insurance

Following are a series of frequently asked questions (FAQs) and answers about insurance in general.

Do I have to take a physical exam in order to get life insurance?

Many life insurance companies issue non-medical life insurance, where you simply have to answer a series of questions in an application. However, depending on your answers, the company might require you to take a physical examination for any of the following: seriously impaired health, existence of a terminal illness, or a request for an unusually large amount of coverage. If you refuse to take an examination, then the company has the right not to sell you a policy.

Can an insurance company refuse to insure me if I have a preexisting condition under an individual medical plan?

Yes, a company can reject you for a preexisting condition with almost no exceptions. A preexisting condition is a medical condition that the insured knows about before applying for coverage. Such a condition might affect either insurability or premium amount.

What is meant by Creditable Coverage?

A pre-existing condition is an illness or injury for which medical advice or treatment was recommended or received up to six months preceding the enrollment date (excluding pregnancy).

How much life insurance do I need?

ICreditable coverage generally includes the period of coverage under an individual or group health plan not followed by a break in coverage of 63 days. Examples of creditable coverage include group or individual health coverage including governmental or church plans, medicare, Medicaid, military-sponsored health coverage (CHAMUS), state health insurance high risk pool, and COBRA.

How many participants does it take to purchase group health insurance?

Before buying life insurance, you should assemble personal financial information and review your family's needs. There are a number of factors to consider when determining how much protection you should have. These include:

Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.

If I develop a serious illness or become disabled. How can I protect my family?

People in their prime working years are more likely to become disabled than to die. Thus, depending on your personal circumstances, one potentially excellent way to protect you, your family, and even your business, is to buy disability insurance. In essence, disability insurance provides a "backup" income if you are temporarily out of work. Most disability plans are pretty flexible, and you can buy coverage for a variety of illnesses or injuries, or exclude specific injuries, such as a bad back.

How many participants does it take to purchase group health insurance?

Within certain participation guidelines, two participants is the minimum number required to set up a group health policy.