Cancelling a Health Insurance Policy Author:    Posted under: Health InsuranceHealth Insurance questions answered


With the economy still struggling for a steady footing, people continue to make ends meet. In such a scenario, individuals and families try to cut down, if not totally eliminate, the things that have the most allotment in budget.

Most of the time insurance policies are the first ones to make the cut- whether it’s car, home or health. For those who have been driving for a long time and have never been in car accident, letting go of their car insurance policies seem logical since they haven’t had much use of it in the past. For those who rarely get sick, health care plans seem to be unnecessary for them. That is, until a car accident does happen or they do get sick.

Let’s just say for the moment that you want to let go of your health insurance policy, will the insurance company allow you to do so? Are there consequences in cancelling a health insurance policy? On the other hand, can an insurance company cancel my policy or membership for any reason?

First and foremost, yes you can cancel your health insurance policy. The insurer may ask for reasons but they will eventually allow you to cancel your policy. The amount of money you will get if you cancel your policy will depend on your policy or if you have already used some part of it. And it takes normally weeks to get your money back or for your cancellation to take effect.

There are some states, though, that will require you to get some form of health care plan. Make the necessary arrangement as to how you are going to abide by this law or requirement.

Of course, there are consequences when you cancel your health insurance policy. It’s a cycle actually, not only in terms of insurance policies. In the event that you do get sick, you will have to pay for your medical bill out of your own pocket. And in case you don’t have any means to shoulder everything yourself, hospitals might not be able to do the necessary treatment you need.

There is also the question of; can your health insurance company cancel your policy or membership? As a general rule, insurers cannot cancel your policy or membership. State law forbid insurance companies from discrimination based on race, ethnicity, gender or age. Or whatever your medical condition might be on the time that your policy is in effect. But they can, however, cancel your health insurance policy or membership in the event that they find out that you have misrepresented yourself during application or purposely omitted relevant information about your medical history. A part of your premium may be returned to you but not the whole amount paid.

Whatever your reason may be for cancelling your health insurance policy, I suggest that you think twice before doing so. Remember that it is still safe to have some form of health insurance than none at all. It will not only provide you with emergency medical assistance but most importantly peace of mind in the event that an unforeseen event may occur.

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