Florida Health Insurance Tips

Florida Health Insurance Terms:
Please Define:
"Contestability Period"

This is the time period during which the insurer can deny a claim - if it finds there were material misrepresentations made in the insurance application. For that reason it is important to double check facts on your application. The "Contestability Period" usually covers the first two years that you insurance policy is in force. A policy becomes "incontestable" when the contestability period is over.

What if you lied about your smoking habit on your life insurance application? And what happens if the insurance company finds out? How much do you have to smoke to even be considered a smoker? The answers might surprise you.

Life insurance companies like their policyholders to be in good health. So much so that some companies have three different premium classifications: standard, preferred, or preferred plus. You're rewarded with lower premiums if you're super-healthy and haven't smoked in five years because that reduces your chances of dying soon. Being just "normally healthy" requires that you haven't used nicotine in the past three years and still gets you lower premiums. A standard rate requires that you have not used nicotine within the past year.

News Article: More About: "Contestability Period"


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