How would you feel if you bought a medical insurance policy and two years later you were diagnosed with bowl cancer and they denied the clam?
The medical director of the insurer sent you a letter saying that “After reverse extrapolating the growth of the tumor, it started growing a few months before inception of the policy with medical certainty and there for this a pre-existing condition and not covered. We fully realize you were asymptomatic and there was no way of you knowing it existed or could have been diagnosed with this condition.”
I would feel terrible and cheated as insured and as the broker that sold the policy I would not be able to sleep at night until I found an alternative so this could never happen again. Insurance above and beyond the contract is supposed to be governed by the utmost of good faith between all parties to the contract. I believe this decision was a violation of good faith.
There is a great book by Simon Winchester called “A Crack in the Edge of the World” about the San Francisco Earthquake. All those people that bought earthquake insurance were denied because it might have been the fire in the aftermath that caused the destruction, or it was because they had fire insurance and the earthquake caused the fire. All American insurers found a way to weasel out of paying claims. The one British Insurer involved in this market sent a famous one word telegram to his claims adjustors: “Pay all claims!” This was prescience as for the next decades he justifiably cornered the market in property insurance in the USA. Consumers rewarded that Good faith!!!
You should check the policy wordings on pre-‐existing conditions so you don’t get caught. If they say that they don’t cover pre-‐existing conditions including the ones you don’t know about or couldn’t know about then choose policies that less restrictive and reward those insurers that will apparently act in good faith right from the contract.
What policies do have fair pre-‐existing conditions policy wording? There are only two that we can recommend right now for expats in Mexico, IMG Europe and Morgan White. If you consider these policies the cancer scenario as above won’t happen to you and you won’t pay more.