Everyone is a Privilege Customer…
Health insurance companies always look to extend their customer base so that their costs are distributed on a larger scope of policies. It also adds to their revenue pool making claim payments easier. A larger customer base also has a direct impact on the companies’ premium rates. As such, every insurance company will treat you as a privilege customer without any bias or prejudice.
But who is the best customer?
For you to make it to the list of best customers from the insurance company’s standpoint depends on your ability to meet certain parameters. These are mentioned below:
Age: Older people investing in health insurance plans, though welcomed, bring higher risk to the company. This is because they face higher probability of falling ill and making a claim. Claims made are inversely proportional to an insurance company’s revenues, and a higher probability of claim means that the company will have to pay out a higher claim, which falls in the negative list of the company’s favorites. On the other hand, if you are young, you will have a higher immunity and almost zero ailments. If you are buying a policy, you will increase the company’s revenue while at the same time lowering the probability of claim. Since it will be a win-win situation, you will qualify for a spot in the company’s list of favorite policyholders.
Medical History: Given the increased number of patients suffering from lifestyle ailments like diabetes, obesity, hypertension, etc., your medical history is also decides the risk you pose to an insurance company. If you do not have any pre-existing illnesses, the company will be delighted to cover you at normal premium rates.
Loyalty: With the portability feature, a policyholder can transfer their health insurance cover from one insurer to another. In a way, the insurance companies are always at a risk of losing their clients. That is why loyal customers top the list of favorable customers as they contribute regularly towards the insurance company’s revenue. Younger age groups enjoy wider coverage from their existing insurance provider, which ensures higher level of customer loyalty.
Complete Disclosure: That proposal form which comes with your health insurance plan is an important document. It makes a binding contract between you and the insurance provider, and requires you to provide all your details. On the basis of these details, the insurer asses the level of risk. Now you might deny it, but there are people who provide false information about their medical history. Some fear increased premium or restrictive conditions that might come with the disclosing of one’s smoking habits or any pre-existing illness. But remember that any kind of non-disclosures put the insurance company at risk.
What is in it for you?
Qualifying into your health insurance company’s best customer list might not be your top priority. But, being the best has its perks too. If you pass the parameters test, you will be rewarded with lower premium rates, which would have been higher if your risk to the insurer would have been higher. Moreover, your claims will also be honored without any fear of rejection. So maintain the bond of utmost good faith with your insurer and see it work to your advantage.