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You may
be paying too much for health, life or long-term care
insurance! I know because a life insurance company recently
tried to charge me double. My experience may save you money
and keep you from being turned down the next time you apply
for insurance.
I recently applied for some additional life insurance. As
usual, a nurse came to my home, asked me some questions,
took some samples and did an EKG. I wasn’t concerned because
I am generally in good health. That’s why I was so surprised
when the life insurance company wanted to charge me twice
the amount I was expecting to pay.
Come to find out, they thought I’d had a heart attack! Now I
may not be the sharpest guy around, but surely I’d know if
I’d had a heart attack. In order to get the rate I expected,
it would now be up to me to prove that their conclusion was
wrong.
Worse, the insurance company reported the test results to a
little known association called the MIB. Just like a credit
report affects your ability to get a loan, the MIB, or the
Medical Information Bureau, is like a health report that is
consulted by insurance companies. Every insurance company I
apply to in the future will also think something is
seriously wrong with my heart. That means I could be turned
down for coverage or charged a much higher rate. What’s on
your health report can affect you, too.
For 100 years, the Medical Information Bureau has recorded
any health problems uncovered during the underwriting
process. By cross-referencing your application against their
records, the MIB reduces insurance fraud and makes it easier
for insurance companies to accurately assign risk and write
policies. That means they can tell if you may not be telling
the truth on your application.
Any time you apply for health insurance, life insurance or
long term care coverage, your application is run through the
MIB’s database. But only 15% to 20% of applicants have an
MIB record. And the MIB can’t include medical records from
your doctor. They only track information gleaned through
your application, including results from any tests the
insurance company requires. So if you go to your doctor and
have your blood cholesterol checked, those results won’t be
sent to the MIB.
If you fail to disclose a preexisting condition on an
application, a red flag will be generated, which could make
it more difficult to receive coverage. Also, your MIB file
may contain errors. Mine certainly does. Not only are the
EKG results misleading, but they also show I have another
condition, which my doctor assures me I do not have. With
the help of my physicians, I’m in the process of correcting
these errors. This will not only save me money on my
premiums, but help me qualify for insurance in the future.
The main point is that you have to be your own advocate.
It’s up to you to get a copy of your health record from the
MIB. Having a copy of your health report prior to applying
for new insurance can also help you remember a condition you
may have forgotten, especially since their records go back
seven years.
You also need to correct any errors it might contain. This
is a tedious process at best. Since insurance companies and
agents make more money if your premium is higher, they
aren’t as motivated to help you correct any errors. You must
take the lead. Plus, you will bear the cost of any
additional tests or doctors visits that may be needed to
disprove their conclusions. I’ve had to see three doctors
and have several tests to prove I’m fine.
Fortunately for me, my heart is fine. It may still take
months however for the corrections to be made that will
reflect an accurate medical history.
It’s worth the effort. Otherwise you could jeopardize your
future chances of qualifying for insurance or may have to
pay far more. For just $9, you can receive a copy of your
own MIB record. You can get all the details, plus other
helpful information at their website, www.MIB.com.
If you’d like free, clear, unbiased advice submit
your questions to www.guardingyourwealth.com/askjeff.htm.
Mr. Voudrie is a Certified Financial Planner, nationally
syndicated newspaper columnist and President of Legacy
Planning Group, Inc., a Private Wealth Management Firm in
Johnson City, TN. He can be reached toll-free at
1-877-827-1463 or at
jeff@guardingyourwealth.com.
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