Some people may consider changing their insurance policy during the renewal time. But, often time, policyholders are not aware of the disadvantages of changing contracts. What would be the risk of doing so? One of the main reasons people would like to change their insurance is because they may find out how much they could save by requesting a new insurance policy. It is complicated because they did not realize that there are risks that come with changing insurance policies. Many want to change contracts in which they don’t know the disadvantages of changing. Indeed, the risk is mostly financial.
– Lost of the anteriority of the policy
If you decided to change your insurance, you are no longer a priority for your previous insurance policy. You will lose your benefits even though you have been with the insurance policy for a long time.
– Lost of coverage of the pre-existing condition
If you are currently using insurance to cover your medical expenses but then decided to change your insurance, the insurer will have the right to refuse coverage on your past medical history. What is a pre-existing condition? It is a medical illness that you have before you sign a contract with your insurer.
When you change your insurance policy, your current medical history will count as past medical history to your new contract. It means that your current insurance will no longer cover your medical expenses, and it will hand it over to you. Therefore, this could cost you an extreme amount of money unless your insurer agrees to cover the fee.
– Lost of advantage
The main benefit of staying with your current insurance policy is that they are more likely to offer you loyalty discounts. Usually, the loyalty discount may be higher if you have been a long-term client. Therefore, if you change the insurance, you may not receive this loyalty benefit. Keep in mind that as for the pricing some insurers may offer you a low-rates in the first year, but they go up in the second. It surely will help you to think again whether you want to take the risk or not.
– People are entitled to pass “past medical history” again
When you sign a new insurance contract, you will usually have to fill in a medical questionnaire. The higher risk is that up to the first five years with the new insurance, they may request a PMH (past medical history) research at any time for a simple claim or hospitalization. The insurer will request a form for the policyholder to sign stating that the insurer can “dig” anywhere to check if there was no hidden medical information. This process can take up to one month or more to have the return from the hospitals, doctors, clinics, etc. During this time, it does not mean that the insurer will not cover the costs, however, there will be many delays in the process as they will request the client to pay and claim. In the case of a surgical emergency, this can become a huge trouble.
In conclusion, before switching to a new insurance policy, it would be smart to consider all of the points above. You can of course contact our AEXPAT team for advice and to guide you if you decide to take another contract. You can always contact us at infos@aexpat.com. We undoubtedly will help you to understand more about your insurance and avoid severe financial loss.
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