What are cancellation clauses?
Cancellation clauses allow insurers to cancel your coverage for many different reasons. To protect yourself, make sure you have a guaranteed right to renew your policy no matter what your state of health. Similarly, make sure your company cannot cancel the policy because you make a claim for a condition likely to be expensive. You don’t want the company to be a fair-weather friend who takes your premiums during the good health days and runs away when you fall sick. However, note that the premium will be higher when you demand this right. Also note that these rules will change once the health care bill of 2010 becomes effective.
