Buying health insurance is as much a science as it is an art. Research has shown that most people don’t buy their insurance online; hence, you have to make it to the brokerage office, typically through an agent. The problem is that many agents, especially in the state of California, are looking to make a quick buck, simply because there are no other options for a job.
To make matters worse, this is where most people make their mistakes. Most people don’t realize that the broker can be setting you up for a bait and switch scheme. Here are the top health insurance 5 mistakes you should avoid while buying your next policy.
1. Not Checking Your Credit Report
Your credit report is heavily weighted when it comes to insurance. The reason for this is because most insurance companies have a minimum credit score requirement of 640. Unfortunately, for too many people, they’re not checking their credit reports.
They’re so busy and prey on the fact that most people take their credit scores for granted. They know that it’s up to the insurance company to see if you can afford the payment requirements, not them.
Let’s say that you have a credit score of 600. The insurance company will reject you if you don’t pay the higher premium to the broker.
If you do your homework, by looking at your credit report, you can see which companies are looking at your credit score. You can then ask the broker if they call the credit report, as well as if they check a credit score at all.
This will let you know if you’re playing a numbers game.
If they don’t, then you are being set up for a bait and switch.
The insurance company rejects you because of your credit report, but the broker tells you that your credit was great and you don’t need to worry, because he or she has a great offer for you.
You buy the policy, and you get paid.
The broker gets paid.
The broker may even put a hold on your credit report for a number of months, so the insurance company can’t reject you again.
All of the sudden, you’re in the hole for a number of months and you have to pay � since you didn’t actually purchase health insurance