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Tuesday, June 8, 2010
BEWARE OF THE SCAMS IN THE INTERNATIONAL MEDICAL INSURANCE MARKET
Offshore Health & Travel Benefits, LLC
Top Scams -International Medical Insurance
June 2010
www.tilloglobe.com
Top Scams -International Medical Insurance
June 2010
www.tilloglobe.com
1. Is the International Insurance Company Sound? - make sure the proposed international insurance products are underwritten by a strong re-insurer, this is very important (i.g. Lloyd’s of London). Re-Insurers often audit corresponding companies who sell their products. Also, a strong re-insurer should have strict guidelines in place related to Underwriting, Claim Reimbursement, Customer Service, Annual Renewals, Pre-existing Conditions and Product Design. You may need to contact a re-insurer at some point over the life of the policy, make sure there is a protocol to follow for communication.
2. Annual Renewals; Will Future Claims be Used Against You? - make sure the international insurance plan that you are considering guarantees an annual renewal each year. Also, make sure that you are not penalized for poor claim experience. A strong insurance company pools its members by using “age-banded” rating and does not base the annual renewal rate solely on one’s claim experience for the year. This is one of the most important issues related to annual renewals.
3. Will the International Insurance Carrier pay via Direct Payment & Wire Transfers? Make sure that the international carrier can pay via “direct wire” or “guarantee of payment” for costly or expensive procedures, 24-7 and 365 days a year. Some carriers require the member to pay for large medical expenses upfront; this is not good. A quality international broker and carrier can get on the phone and make things happen quickly with no excuses. You need to deal organizations who will talk over the telephone or in person, as opposed to relying on faxes or e-mails with no or limited follow up.
4. Broker &Agents; No License or Experience -No Deal! - make sure your international broker or consultant has an insurance license. Many brokers outside of the USA USA
5. Don’t Get Taken by Hidden Agency & Broker Fees! - make sure your broker or agent is not embedding extra commissions into your rates or charging processing or application fees. Many brokers add hidden fees and do not mention this to prospective customers. The international carriers pay out commission percentages based on the carrier’s advertised book and annual renewal rates and volume. You should never pay more than the published book rate during your first year of coverage. Many book rates are available on the internet.
6. Broker & Agency Communication After a Plan is Purchased - make sure your international broker or consultant can be reached 24-7, and 365 days a year in case of an emergency or for general questions. All of our clients have our company’s cellular telephone number and we welcome calls 24-7, and 365 days a year. I personally have dealt with 9 life threatening emergencies since 2002. Most of these cases were resolved and the members are back to good health. Many brokers take days to respond, and some cases, unfortunately, simply do not respond after a sale has been made. This is unacceptable.
7. Purchasing an International Plan off the Internet? - do not purchase an international insurance plan off the internet without speaking to knowledgeable representative first. You may not be buying what you think you are! Some countries are off limits to certain insurers. Many plans do not offer a guaranteed annual renewal.
* previously published in escapeartist.com
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* previously published in escapeartist.com
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Robert Tillotson
Offshore Health & Travel Benefits, LLC
512.482.0257 / cell: 512.296.4976
www.offshorehealthandtravel.blogspot.com
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