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Friday, July 03 2009 @ 07:00 PM GMT-6 |
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 Stop policies that are not a part of a group.
For some (I admit maybe many) a policy that is not part of a group is cheaper. At first. But it is the gateway to later costs and problems.
Later when you start to really using insurance you probably will find that your cost is then higher than a group policy. Your rate gets raised because of your individual history rather than a more gradual average of a large group. But, because of existing conditions you can't get into a group or getting in would leave you paying more in total with the out of pocket for what would then be excluded expenses.
Insurance has two basic reasons. 1) To spread the cost over time by building a reserve first and paying the rest in small payments after. 2) Reduce the impact by spreading the risk over a large population.
It is that last reason that is minimized by policies that are not in a group. True the insurance companies don't treat each such policy as a stand alone box. But neither do they treat all such policies as a group to spread the cost and risk.
This isn't all. More on groups later.
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