Author Box
Articles Categories
All Categories
Articles Resources

Would a Health Insurance Contract Work?

June 04, 2012 | Comments: 0 | Views: 184

What if health insurance were like other products on the market, say a cell phone. With a Cell phone, you often times have to enter into a two year contract. Under that contract they will not increase you rate, and if you want to break the contract you have a financial penalty. We will call that a contract buy out. Your term life policy covers a certain amount and is locked in for 20 years (granted you only die once).

Health insurance as it is now, there are no length of term contracts, usually the insurance carrier will guarantee you the approved rate for one year, but you are not obligated to keep it for a year. Of course it is a contract on what will be paid and how much will be paid.

What if I could buy a five year contract for my health insurance? I would get my rate for five years, and the insurance company would know they are getting my premium for five years so it would benefit them as well. Now let's take it a step further, what if I could get at renewal time a rate based upon my claim history. Now there would have to be some kind of cap if you are unfortunate enough to have some higher claims in a fire year period. Maybe a maximum renewal amount is 20% per year you had the health plan, so in five years with $5 million in claims you get a 100% increase from where you were fiver years ago, but what if I had no claims for five years or under $5000 in claims in 5 years. Would it be possible to get the same rate, that I had five years earlier? Maybe I could get just a slight increase.

These things I am discussing are giving people incentive to purchase health insurance while they are healthy, and maybe an incentive to stay healthy. What if after five years, You had not claims, but lost 20 pounds? Would you be healthier? I guess that depends on what you weighed before, but would that entitle you to an even better rate?

Fixing the health care system in this country is not about providing free medical care, or making everyone purchase health insurance. If everyone is responsible and you give them incentive to stay that way, maybe we can fix this thing after all.

I am just giving you something to think about.

Eric Wilson Is President of I Sell Health, Inc. It is a Chicago area insurance agency. He can be reached toll free at 888-448-5370 or online at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Health Insurance


Five Years


Purchase Health


Cell Phones



Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Once you approach 65, you will be entitled to Medicare, but that does not mean that you will certainly be completely protected in case something happen to you. Lots of people make that error and they

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 170

Plenty of people assume that when you approach the magic age of 65, everything will be easy. You will receive an impressive huge check from Social Security and all of your medical treatment

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 172

Once you turn 65, you will find that it is important to start researching a Medicare Part D plan. While this is part of the Medicare program, in several ways it is absolutely different as the only

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 174

Once you turn 65, you will have a loads of paperwork to accomplish. You might be retiring from your employment, and you may also need to communicate with Social Security who will start mailing you

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 171

If you know somebody who has stayed inside the medical center for an extended period of time, you must inquire them what their expense was. They may perhaps tell you several unbelievable numbers that

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 179

When you begin to get close to the age of 65, you may be unhappy about your growing years, but there are some good benefits waiting for you. You have been working your entire lifetime in order to get

By: Roderick F McGoughl Insurance > Healthl June 05, 2012 lViews: 168

Discuss this Article

comments powered by Disqus