The maximum amount of group coverage available to an individual during the initial enrollment period that does not require medical underwriting. For example, an individual may obtain guaranteed issue amount coverage of two times his or her annual salary, with higher benefit amounts requiring medical underwriting.
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Initial Enrollment Period (Private Health Coverage)
The first time an individual is eligible to enroll in a group’s benefits programs. During this period, the individual’s medical history is not subject to review. Once enrolled, however, pre-existing condition exclusionary periods may apply.
Any medical care that you receive for a medical condition. Some examples include being prescribed medication, visits to the doctor, and therapy for a mental health problem.
The review of an individual’s medical history and/or medical records to determine if the individual is eligible for coverage. Medical underwriting, which may include new medical testing, can be used to deny coverage or determine if a particular pre-existing condition will be covered.
The annual time period when an individual may add or change coverage in an employer-provided or association-affiliated insurance plan. Changes during most of these annual periods will require medical underwriting to add benefits not elected during the initial enrollment period. The federal government calls this period "open season", and other insurers may use different terms.
Any condition for which “medical care” was received within six months prior to the effective date of insurance coverage. Medical care includes the use of prescription drugs and physician consultations and services. During a pre-existing condition exclusionary period, coverage for that condition is either not provided or can be limited.
The review of an individual’s medical records, or the performance of medical testing, to determine eligibility for coverage. Individuals who elect coverage through a group during the initial enrollment period for the guarantee issue amount are not normally required to furnish proof of good health.
The period of time an individual is required to be employed by a company or be a member of an association before becoming eligible to enroll for the group’s health coverage. Also known as the minimum service requirement.
The penalty assessed when funds are borrowed against the cash value of a whole life policy. The surrender charge decreases the longer the individual is insured.
If you were to cancel a life insurance policy prior to death or maturity, you would likely receive some portion of the full value of that policy. The amount you would receive is known as the “surrender value.” The surrender value of your policy should be written into it. If you do not know the surrender value, contact your policy administrator to find out. Not all policies have a surrender value (i.e. - burial insurance and many term insurance policies).
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