Non-cancellable and guaranteed renewable

Non-cancellable and guaranteed renewable are desirable features in a policy. Many health insurance policies are cancellable by the company. Companies need protection against fraudulent and exaggerated claims and, under certain circumstances, are justified in discontinuing insurance. Indirectly, this protects all policyholders from paying higher insurance rates.

Deductibles

Deductibles are familiar features in health as in automobile insurance. Deductibles are stated as amount of total expense, specified number of days of sickness, or number of visits to the doctor that the insured must pay before benefits start.

"Exclusion clauses"

"Exclusion clauses" eliminate certain conditions from coverage in a policy. Examples might be alcoholism, drug addiction, and pregnancy.

Effective coverage

Effective coverage indicates when the insurance actually starts. Waiting periods are common, especially with sickness benefits, and range from 5 to 30 days after a policy is issued. The longer the waiting period, the less the cost of insurance.

Medical history and present health

Medical history and present health are usually reviewed before a company issues a policy. If a person has certain defects or diseases, it may not be possible to get health insurance. In some cases, coverage is available but an extra amount is charged to cover the added risk, or a restricted type of coverage may be offered.

The meaning of total and partial disability may vary in different policies.

Disability or income protection insurance

Disability or income protection insurance is usually made available up to 60 to 75 percent of a person's gross earnings. The total amount payable, or the period over which a certain amount is payable, is also limited. Loss of income policies usually exclude payments for injuries or illness incurred on the job if the job is covered by workmen's compensation regulations.