What is Guaranteed Issue Health Insurance?

Guaranteed issue health insurance plans are plans that are available to people who do not qualify for standard full coverage major medical insurance.  Virtually everyone qualifies for guaranteed issue health insurance as pre-existing conditions or other health related issues which normally excludes people from major medical insurance does not apply.  The only reason a person would get rejected for a guaranteed plan is due to a history of fraud or non payment of premiums.

A guaranteed issue health insurance plan is not a major medical health insurance policy and therefore only covers certain specified aspects of health care. For instance, it is possible to buy a personal accident indemnity plan. In this policy, the insurance company will only cover the benefits related to personal accidents, such as dislocations, burns, fractures, paralysis, surgical procedures, lacerations, comas and brain concussions that have resulted from a covered accident. This plan includes emergency room fees, follow-up treatments and hospital confinement benefits, including intensive care benefits that are a result of the covered accident. Most types of accidents are covered, but there are several exclusions as well, such as any type of accident that results while the driver is under the influence of a controlled substance or while intoxicated. Mountaineering accidents that include using ropes and/or related equipment, parachuting, or hang gliding are excluded from the policy as well as sport-related injuries for individuals that are working for a wage, including officials and coaches. These are just a few exclusions that are in the accident policy. I highly recommend reading through the exclusions section of the insurance company’s brochure before purchasing a policy. Nothing is more maddening than finding out after the fact that your insurance doesn’t cover the accident you had last week.

You should check with insurance carrier or your local health insurance agent on the specifics of a guaranteed issue plan, but they can be a lifesaver when major medical insurance is not available.