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The health insurance industry is a highly competitive one and insurance agents vie for your business. In order to get your business they may and in fact they indeed do resort to certain tactics that can best be described as underhand. Here are certain things that you need to be aware of when dealing with insurance companies so that you can take the right decision regarding your health insurance policy.

- If the policy states that it has been approved by the Dept of Insurance of the state in which it operates it does make the policy special or unique. This is the law and it does not mean that the state department is endorsing the policy.

- The company can present you with marketing documents that overstate and misrepresent the nature, scope, and type of coverage. In short the marketing and insurance agents may make a policy sound impressive by embellishing it. Do not take the marketing documents to be the final word, check the policy document carefully for all the points that you wish to look for in the policy.

- Another gimmick used by health insurance companies is to club policies under a name or even name a single policy in such a manner that it misrepresents the true nature of the policy. Every policy has a limit and no policy can be a cover for every health situation but this is exactly what a name such as “Total Cover” may lead you to believe.

- It is not uncommon for insurance agents to pursue you to let your old health policy lapse even before the new policy begins. This can have a catastrophic impact should you actually come to require money as under your first coverage. Do not under any circumstance relinquish your first policy till you have read all the details of your new one.

- You would be well-advised to stay away from insurance agents that speak ill of other competing insurance companies; these people in all probability are trying to distract you from deficiencies in their own product.

- Stay miles away from an insurance agent that offers to draw a health insurance contract for you that has different terms from the official policy. Insurance products are approved by the state and cannot have variations or special accommodations that are outside the approved structure for insurance forms.

- If the health insurance agent is offering you an inducement such as a rebate not mentioned in the insurance contract then that’s something illegal; do not get involved in such a deal. Another form of rebating is the insurance person offering you stocks in the insurance company if you purchase a health insurance policy from him.

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