I am thankful for CBC News for bringing to light the areas of an Insurance Contract that are important to understand. This week they are talking about a couple who travelled out of country, by the sounds of the article this couple had several medical issues. My previous post talked about travelling out of country with an existing illness, that stability prior to travelling is important. Please check your contract for the length of time you must be stable.
This couple bought a personal out of country policy and when they required medical services, both contracts paid a portion. This is called Subrogation and this is used in several areas of an Employee Benefit Contract. Their concern is that their Employee Benefit Contract (Group Plan) has a $500,000 lifetime maximum and part of this maximum is used up. They would of preferred to have the individual contract pay the full amount so they could keep their lifetime maximum with their Group Plan.
I think it was prudent for this couple to buy additional out of country coverage, a $500,000 lifetime maximum can get used up pretty quick in a medical emergency.
In my next blogs I will be talking about other areas of the Insurance Contract that use Subrogation, such as Extended Health and Dental Benefits and Long Term Disability. Subrogation can allow people to have 100% coverage on a Health or Dental claim and can allow a Long Term Disability claim to be paid at a time of indecision.
If you would like to review this or other areas of your contract, please contact me. If there is an area of the contract you would like me to research and blog on, please visit my site and at the bottom of the page “Start a Conversation”.