Medicare Supplemental Insurance: When Can My Policy be Cancelled?posted on August 13, 2010
Medicare Supplemental Insurance, or a Medigap plan, is purchased to help you fill in the gaps where your current Medicare plan may fall short. These policies can be very important to help you survive with your income in case of some sudden emergency. For this reason it is very important to know why your insurance company can drop your supplemental insurance at any time.
- If you stop paying your premium your Medicare supplemental insurance plan can be cancelled. This is really no surprise as everyone would expect to have a plan cancelled if they didn’t pay the premium.
- If you knowingly lie on your insurance application your plan can be cancelled for material misrepresentation. You must be honest and truthful in order to get the policy that is representative of your situation.
- If your insurance company becomes bankrupt or insolvent your policy may be cancelled. This may seem unfair, but there is little other answer for such a situation. Go with a company that is publicly financially responsible to guarantee your insurance plan.
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