I was told by an agent that if the application was approved, the first month payment would automatically be drawn. Is this true? Do I get a chance to review the contact (within a window period of time) and decide if I will go for it?
Is the first month medical insurance premium automatically taken if an application is approved?
13
Apr
Zarnev
April 13, 2010 at 1:36 am
Generally, the first month payment will be drawn as soon as they get the application, prior to approval, although some companies will make the withdrawl on approval. Yes, you’ll get a chance to review the contract and will be refunded the money if you don’t want to accept it.
Insurance Pickle.com
April 13, 2010 at 2:32 am
Yes, what Zarnev said. Many insurance companies take the money BEFORE you’re approved and then return it automatically if you’re declined or send it back if you cancel within a reasonable amount of time. If they have an application fee that would be the only thing not returned.