How to Choose Among Credit Insurance Companies

Basically, a credit insurance is a means of protecting a company from unexpected loss due to unpaid receivables. With credit insurance, the credit insurance policy holder is enjoying the benefit of reducing losses due to bad debts. Credit insurance companies charges its clients with monthly credit insurance premiums that may be based on a certain percentage of sales or amount of outstanding receivables. Credit insurance policies also covers losses on goods and services shipped while the policy is still in effect.

However, in order to enjoy all the benefits of a credit insurance, a company should be able to get a credit insurance from reputable credit insurance companies. With the right amount of patience and persistence, a company should be able to choose a trustworthy insurance provider that will meet his needs. However, there are also helpful tips that you can follow in order to choose the most reliable among credit insurance companies.

  • If you already have a prospective credit insurance provider, learn more about the company. Find out how long they have been in business. If you haven’t heard about their name in spite of their extensive years in operations, try to find out why. They may be specializing in a certain product before their company gained recognition in credit insurance industry.
  • Know also the credit insurance company’s capacity and focus. Are they big enough to attend to all the clients’ specifications? What is their focus? Do they aim at protecting your company’s assets by ensuring your receivables from unexpected loss? Will they help strengthen your credit management? Moreover, find out if their goals are aligned with your needs.
  • Know the extent of service that they can give you. Are they going to guide you through the application process? How are claims made? What kind of assistance are they going to give you if the need to make claims arise? There are some credit insurance companies who only aims at getting you to accept their offer but does not live up to one’s expectations in giving quality service through the policy period.
  • Find out how they are doing in the credit insurance industry. If they belong with the leading credit insurance companies, there’s a great chance that you are in great hands with them.
  • Ask for a quotation from different credit insurance companies so you can make comparisons. With these comparisons at hand, you can tell which insurance company can give you the best package. This will also give you the capability to haggle for better terms. Some credit insurance companies can give quotations by visiting their website. However, it will still be best to visit the insurance company in order to have a more accurate quotation.

Overall, good credit insurance companies should be able provide your business with a credit insurance policy that will help maximize your credit risk management. It should also be able to provide a tailor-made credit insurance for your specific credit insurance needs. Whether it is for your large accounts only, for a specific product line, for local sales or international sales, among others, they should be able to cater to your requirements.

Catastrophic Health Insurance Plans: FAQs

Question: What are Catastrophic Health Insurance Plans?

Answer: Also called as a high deductible health plan or a major medical coverage. This is basically a type of insurance that had very high deductibles and lower premiums. They are, in general, more affordable. The fact that the deductibles are so high, the risk on the insurance company is very low. This health plan is often paired with a Health Savings Account.

Health Saving Account

Question: What is a Health Saving Account?

Answer: This is an account created by the federal government in order to help out people and get them a better chance at affordable health coverage. If you are qualified for this, you will be able to get lower premiums and save on taxes too. It provides a way to save money for your medical expenses without being worried about a forfeit rule.


Question: What do Catastrophic Health Insurance Plans Cover?

Answer: This insurance plan is able to pay for your medical expenses and hospital expenses but not for your check ups, medications or maternal expenses. They are also able to cover for surgeries, ICU hospitalizations, other examinations and tests that you have to undergo and hospital stays.

Best Options

Question: Is This The Best Option?

Answer: It is the cheapest of all insurance plans. The deductible are very high. But they do have a maximum lifetime benefit or a cap as to how much you can get in health benefits. This amount ranges from a million to 3 million dollars. If you reach your cap, they will no longer be able to offer you any further benefits.

Pre-Existing Conditions

Question: Do the Catastrophic Health Insurance Plans Cater to Pre-Existing Conditions?

Answer: no, they do. If you have pre-existing conditions like heart disease, AIDS, emphysema or diabetes, you will not be able to get this plan. You may not even be able to get an insurance plan from private companies. Or if you do, it wouldnít be a very good plan. our best bet would then be the PCIP (Pre-Existing Condition Insurance Plan). They will be able to offer you coverage on your medical expenses even if you have a pre-existing condition.


Question: Is This The Best Option For Me?

Answer: It is the best option for most. You should, however, bear in mind that not all Catastrophic Health Insurance Plans are qualified for HSA (Health Savings Account). Also, like other types of health plans, Catastrophic Health Insurance Plans vary in terms of coverage and pricing. With this in mind, you still have to research and compare before making a decision. Since your health and a whole lot of your money could be at risk here, you really need to be able to make an educated decision. One that will be in your best interest.


Question: How Do I Compare Catastrophic Health Insurance Plans?

Answer: Fortunately, there are tools online that you can take advantage of to make your comparisons easier. Just find sites online with these comparison tools for health plans and you can go ahead and compare he details of each insurance plan. Be meticulous and detailed when you do this to ensure you get the best available coverage.