One of the most important pieces of a person’s estate plan is the Health Care Directive. Simply put, the Health Care Directive (or HCD for short), spells out how a person wants to be cared for when they become disabled. I say when they become disabled, because people are six times more likely to become disabled than die in a given year. We will all be disabled at one point; it could be the last 20 minutes of our life or the last 20 years.Because of the risks of disability, it is wise to have your health care wishes legally stated. This is where the Health Care Directive comes into play. The HCD will state the treatments or procedures you would like once you become disabled. Additionally, the HCD will state the treatments or procedures you would not like. In fact, stating what you would not like may be just as important.Since it is such an important document, the HCD should be reviewed every three to five years. Just like a Will or a Trust, the HCD may need to be updated. Here is a list of six ways that Health Care Directives fail: Not in Doctor’s Hands (Accessibility)-When the time comes for you to use your Health Care Directive, you may not be conscious. If that’s the case, you will want your HCD to be in your doctor’s hands when you arrive at the hospital. In fact, this is a simple step that many people do not take, which can lead to your wishes being dismissed when a new HCD is created (see #6).
No HIPAA Authorization-An incredibly important document that should accompany your Health Care Directive is a HIPAA Authorization. HIPAA stands for the Health Insurance Portability and Accountability Act. This document authorizes other Loved Ones to receive updates on your treatment status. If you are an elderly parent, you may want your adult children to know about your health.
Not Properly Written-A Health Care Directive that is poorly written will not get better with age! Different people want different options when it comes to deciding their healthcare choices. Usually a “template” HCD cannot offer these choices.
Wrong Parties-The people whom you designate on your HCD should actually be the people you want to make decisions on your behalf. Surprisingly, I have seen many HCDs that spell out the wrong people (or parties).
Old / Out of date-What happens when the person you designated as your Agent seventeen years ago has already passed away? Or what happens when your Agent has moved to California and won’t be able to travel to Minnesota? An out of date HCD is a ticking time bomb.
Revoked By Accident-Yes, this happens. In fact, it can happen quite easily. Here’s how: if the doctor at the emergency room asks your spouse or child about a HCD and they are unsure, they may sign a new “template” HCD right in the emergency room lobby. Chances are, this “template” HCD may not be the same as the well thought out version you completed with your attorney while you were peaceful and sound of mind.A Health Care Directive is an essential part of most people’s estate plans. However, it must be reviewed regularly to ensure that it continues to protect you as you wish. It’s a good idea to talk with an experienced estate planning attorney to see what is best for you.
Tag Archives: health insurance
Importance Of Health Insurance Portability
Choice is always good. In a globalized world, the consumer has a plethora of choices in everything, from airlines to automobiles. This is why nowadays even airlines make an announcement after the passengers land: “We know you have a choice. Thanks for flying with us!”It’s rather simple. You have a choice – if you don’t like the product or service, switch! The same goes for health insurance policies as well. In India, people have woken up to the promise of health insurance, which has led to a proliferation of health insurance providers across the board. Because of this wide variety available, the policyholder doesn’t need to stick to an insurance provider if they feel dissatisfied with the services.The Insurance Regulatory and Development Authority of India (IRDA) has a novel scheme for disgruntled policyholders to switch providers: health insurance portability. Now, what do we mean by this? Let’s elaborate.What is health insurance portability?Health insurance portability is the manner through which a health insurance policyholder can transfer his/her existing policies from the current provider to a new one. Portability offers a way for customers to opt for better service and product. That way, an insurance provider cannot take them for granted.Reasons for portingWhen and why should you port a health insurance policy to a different provider? Here are some pointers to help you decide:o Quality of ServiceIf you feel that the standards of service offered by a policyholder is not at par with what they promised while logging you in, may be it’s time to move on. Often, an insurance provider will promise the moon while getting a customer on board in the eagerness of cracking a deal, but gradually, reality strikes and the customer realizes that it was all hogwash. There’s no point continuing a bitter relationship, right?o Increased BenefitsThere might be a point when you realize the cover offered to you by your current health insurance provider is not sufficient, and after talking to them it seems clear that that’s the best they can do. Under the circumstances, it may be wise to switch to a provider that can offer the additional cover/ benefits.o ExpensiveThere is really no point in paying more for a service/ benefit that is available for a much lesser price with a competing provider. If you feel the competition offers a better product at lesser cost, it is time to make that switch.o SpecializationHealth insurance policies are offered by general insurance companies as well specialized health insurance providers. If it is felt that with the current provider, the attention is more on non-health policies, switching to a specialized health insurance company may suit your needs better.o RelocationWhen you relocate to a new city, you need to have the same services and cover as before. But your existing insurance provider may not have as better access or as many network hospitals in the city. It might then make sense to port to a provider who has those services in your city.o Claim SettlementThis is important. Some companies take ages to clear a claim. Before you land up in such a situation, it’s important to know whether your insurance provider has any such reputation. If that is the case, port out.o TransparencyOften there are hidden clauses and conditions in the contract which the policyholder is not aware of. Such hidden clauses rear their ugly head during emergencies, and you do not know where to go. Time to move to a provider with more transparency in their dealings.Now that we have a fair idea when to opt for portability, it is also important to know the benefits. What does a policyholder gain out of it? Well, here it goes:Benefits of portabilityCustomizationWhile porting to a new provider, it becomes easier to customize the features to one’s specific needs and requirements. You can add nominees, even go for additional cover or benefits.Continuity BenefitsWhen you change your health insurance company, there is no reason to lose the benefits you had accrued with your previous provider. According to IRDA, your new insurer has to give you the benefits accumulated with previous insurer.New Sum InsuredIRDA says your new insurer has to insure you at least up to the sum insured under the old policy. In most cases, the existing sum insured is added to the accrued bonus to give the new sum assured. The No Claim Bonus is also added to the new sum insured.Better service, affordable premiums, transparency Portability takes care of the inconveniences associated with your earlier health insurer, owing to which you made the switch in the first place.Yes, portability is a major advantage to those health insurance policyholders who are unhappy with their current insurance provider. But it’s also important to know the conditions and criteria for portability to occur.Conditions for portability1. The policy can be ported only at the juncture of renewal. The new insurance period will be with the new company
2. Apart from waiting period credit, all the other terms of the new policy will be at the discretion of the new insurance company
3. The process has to be initiated by the policyholder at least 45 days before renewal:o Write to your existing provider requesting a shift
o Specify the new insurer you want to shift your policy to
o Ensure that the policy is renewed without a break (there is a 30-day grace period if porting is under process)In short, if you are disappointed with your health insurance policy, portability is a good option that offers a recourse – if the above conditions are met. Now, let’s get into the most important part.How to port?Porting Process:o Application for portability should be made at least 45 days before the renewal date of the existing policy, on the portability form
o The company will then send your portability form and all the policy related documents
o The new insurer will take a decision on accepting the policy within 15 daysOther documents include all previous policies, claim experience, proof of age and others. If any other documents are required, the new insurance company may ask for it…. One more thing!These are some small pointers that go a long way in ensuring that the transition is smooth and a happy one:1. Read all the terms and conditions, product features, brochures of the new company before deciding
2. Do know that the new company can decide to hike the premium, at its discretion
3. Check the claim settlement ratio
4. Needless to say, check for good customer support and service