Late Payment in Job-Based Health Insurance Policy Alabama

Reader’s Question:

What happens if my employer here in Alabama fails to pay my health insurance policy on time?

Michael

Montgomery, AL

As you know, the health insurance policy from your employer in Alabama is a form of benefit you receive for rendering services in that particular company. In most cases, even family members are included in the coverage. The contract for Employer Group Health Insurance Policy is drawn up between your employer and the health insurance company.

So, here goes some awful news. If your employer does not pay the premiums on time, it is possible for you to lose your health insurance policy. The coverage for your family will become unavailable, as well. To make matters worse, you can’t run after the insurer for this because, of course, it can’t be expected to cover the medical claims for health insurance coverage that hasn’t been paid for. Moreover, your employer has no obligation to notify you of their late payment of premiums.

It is difficult to say what you can do to fix this problem. Health insurance policy is controlled at the state level; Each state has a different set of rules. Both the Alabama Department of Insurance and the U.S. Department of Labor’s Employee Benefits Security Administration are places you can go to if you need clarifications on state regulations. They might also be able to help you with problems such as this.

Tags: health insurance, insurance

Life Insurance Policies Alabama

Reader’s Question:

Would it be better to get term life insurance coverage here in Alabama while I am young and then switch it over to a whole life policy before I retire?

Olga

Huntsville, AL

You have a very interesting question. Depending on your medium to long-term financial goals, your age and how healthy you will be ten or twenty years from now, it may not be such a bad idea to get a term life insurance initially, to take advantage of cheap life insurance rates and then eventually switch over to a whole life insurance policy there in Alabama.

This is a good strategy for those who may not be able to afford expensive whole life insurance premiums but would still like to provide financial security to their dependents in the event that the main income earner passes away. Those raising a family, or sending someone to school, paying mortgage on a house, or paying for someone’s health care needs and are on a tight budget would find this strategy useful.

If you see yourself having more financial capacity in the future (preferably after the term life policy is up) that would be the perfect time to get a whole life policy. What would even be better is to get a life insurance provider that would provide you an option to switch your term life policy into a whole life policy without having to undergo any physical or medical exams, or having to submit your health and medical history. The services of an experienced and knowledgeable life insurance broker would be to your advantage in this case.

Tags: life insurance advise, life insurance information, life insurance, cheap term life insurance