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Don’t Just Settle for a One-Fits-All Life Insurance Plan in 2018

Last May, Five Thirty Eight forecasted several changes in the health insurance industry once the GOP healthcare bill was passed. Fast-forward to today and some of these forecasts, including increased premiums for lower income individuals and lower premiums for young, healthy policyholders, have, indeed, happened.

Simply, the reality is that Americans now need to pay more to get the best health insurance possible, and this is fast becoming a concern for many, especially those who live paycheck to paycheck or are otherwise burdened financially already. Add to that burden the high cost of healthcare, which in part is due to hospitals being incentivized to be expensive as we touched on in ‘Make Sure You Avoid Healthcare Stocks’. It is thus imperative to find a value-for-your-money policy to ease the financial load of being insured. To this end, you ought to reconsider those one-fits-all life insurance plans, even though getting one might be the most convenient.

As The New York Times explains in ‘The Problem With One-Size-Fits-All Health Insurance’, this approach to insurance coverage “disproportionately hurts low-income people” because it affords people no choices other than all medically necessary healthcare interventions. Unfortunately, “necessary” in this context means any “any care that offers a clinical benefit” regardless of their cost. This means that you are more than likely to receive hi-tech medical care even if there are cheaper alternatives.

To illustrate, let us consider the same example given by The New York Times: A policyholder of a one-size-fits-all policy suffering from prostate cancer will, in all likelihood, get the highly technical yet rather expensive proton-beam therapy as a medical intervention, even though it has not been proven to be significantly better than more affordable treatment alternatives such intensity-modulated radiation therapy. Now, this setup is well and fine for people who have money to spare, but for those with lower incomes, this approach is quite burdensome, especially considering the availability of health insurance plans that allow you to say no to high-cost treatments that have little to no medical value.

Even more, why even settle for a rigidly structured policy that affords no flexibility when there are better options available? Take Health IQ, a startup in the industry which according to Venture Beat “collects data to let health-conscious people save an average of $1,238 a year on their life insurance premiums.” The company, founded by Munjal Shah, has in fact helped thousands secure a staggering $5.3 billion in life insurance coverage in a little less than 2 years.

So, how then can Health IQ help people save on their life insurance? The startup, a pioneer in the rapidly expanding InsureTech industry, requires prospective clients to take the Health IQ test, a carefully designed quiz that’s aim is to gauge not only the current health of an individual but also their lifestyle. Those who score elite in this test are presumed to be healthy and living a healthy lifestyle and are thus qualified to get the savings. Meet certain fitness thresholds in the course of your policy and you will get additional savings every year. This type of insurance is far more suited for those who follow a healthy lifestyle than the more general insurance options.

Getting value-for-your-money life insurance is not actually rocket science, but it is not that easy either. But with patience and due diligence, finding one that suits your needs is now, very possible.

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