3 Times You Can Change Your Insurance Policy
Insurance is an important tool for keeping medical bills low. Without insurance, you'd have to pay for every doctor visit, ER trip, and procedure out of your own pocket. However, you can't just change your insurance policy as you see fit from day to day. In fact, there are only a few times you are allowed to change your policy. To learn more, keep reading.
During Open Enrollment
Once a year, insurance typically has an open enrollment period. This is when you can easily change/edit your insurance policy. In some cases, (if your insurance is via your employer) your employer may even use this opportunity to introduce new policy and/or insurance company options.
Open enrollment is a great opportunity to try new policies. For example, if your family doesn't use health insurance much, you may want to switch to a high-deductible account. The benefit is that they have lower premiums, and they typically come with a health savings account to help offset the cost of the deductible.
After a Qualifying Event
In most cases, waiting a year to change your insurance policy isn't a big deal. However, what happens if you have a child right after open enrollment ends? Luckily, your child doesn't have to wait a full year to be added to the insurance because having a baby is a qualifying event.
In fact, there are many qualifying events. They include having a baby, getting married, getting divorced, and losing a family member. After any qualifying event, you have the option to make changes to your insurance policy regardless of when open enrollment is.
Of course, in some cases, the insurance policy is through your spouse's job. For example, you are covered under your spouse's insurance because it's cheaper. However, if you get divorced, they can remove you from the policy thanks to the qualifying event. At the same time, however, you can now join your own employment insurance policy, even if you missed open enrollment.
When You're Too Old
Young adults often stay on their parent's insurance policies as long as possible to save money. However, after a certain age, you'll be booted. Luckily, if you already have a job that provides insurance, you can use aging out as a qualifying event, so you can sign up for insurance at your job without having to wait until open enrollment.
When choosing your insurance policy, make sure you'll be satisfied with the terms. In most cases, you can't make changes unless it's open enrollment. However, after major life events, you can typically make changes, such as adding a new child or dropping your spouse. If you're about to go through open enrollment or a qualifying event, start prepping your new policy today.