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December 8, 2006, Newsletter Issue #54: Waiting Periods
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Tip of the Week
Whether you are investing in individual health insurance or have group health insurance, chances are you will be subjected to a waiting period. During a waiting period, which can range from a few weeks to usually no more than six months, your insurance plan will not pay benefits. This is a device used by insurers to limit their liability or risk. The idea is that new enrollees in a health insurance plan may have "roll-over" illnesses or pre-existing conditions the services for which the insurer does not want to pay. When shopping for or switching to a new health insurance plan, make sure you understand all restrictions regarding waiting periods, pre-existing conditions, and how they will affect you from both a financial and health care standpoint.
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