As a general rule, health coverage is something that everyone should have, but the specifics of coverage can often be confusing. One term that you might have heard before is “underwritten health coverage.” But what exactly does this mean?
Underwritten health coverage refers to a type of health insurance policy that requires you to answer a series of health-related questions during the application process. This is in contrast to “guaranteed issue” policies, which do not require any health information and must be offered to anyone who applies.
So why would someone choose underwritten health coverage over a guaranteed issue policy? For starters, underwritten policies may offer significant savings and much larger networks that a guaranteed issue plan and give more comprehensive coverage at this lower cost. Because insurance companies can screen applicants for health risks, they can more accurately predict the likelihood of someone making a claim and adjust premiums accordingly.
Additionally, underwritten policies may offer more customizable coverage options. For example, if you know that you have a pre-existing condition that requires frequent medical attention, you may be able to select a policy that specifically covers that condition.
Of course, there are downsides to underwritten health coverage as well. If you have a pre-existing condition or a history of health issues, you may be denied coverage altogether or offered a policy with prohibitively high premiums. Additionally, the application process can be time-consuming, and you may need to provide detailed information about your medical history.
Overall, underwritten health coverage can be a good option for those who are relatively healthy and looking for affordable, customizable coverage options. However, it’s important to carefully consider your health needs and the potential risks before choosing a policy.