Basic features of private insurance
Private health insurance policies generally offer one or two major levels of coverage: a comprehensive coverage, including in-hospital care and services as well as the services of doctors, lab tests, x-rays and other scans, etc. in a non-hospital setting; and a basic coverage which is limited to all care and services relating to an in-patient hospital stay only.

The common variables within these policies are various limits on reimbursement; a choice of deductibles; and any differences or limitations based on where the care is provided. But beyond this, there may be some traps waiting for you unless you look carefully at what is offered.

Applying for a policy
As the name suggests, it's easy to get coverage from guaranteed-issue policies - just answer a few easy questions and pay your premium. Beware though, when you submit a claim, you may be asked for proof that the problem you just treated wasn't a "pre-existing condition" at the time you applied for the policy.

A pre-existing condition generally means a medical condition, which is currently being (or was previously) treated and any condition associated with it.

Just for clarification, "treated" means:
- Doctor's visits, tests, taking medication, or even a special diet for that condition within the past one year, two years, five years, or anytime in the past (each policy has its own time frame).

- A condition which a "prudent person" would have had treated, even if you didn't, or, in some policies, even if you didn't know about it but they feel you should have.

- "Any condition associated with it" means a medical problem that they deem to be an outgrowth or result of the original pre-existing condition. For example, a broken leg could be deemed to be the result of brittle bones caused by cancer treatments.

If the insurer decides it is a pre-existing condition, they may deny the claim. Always remember, the larger the claim the more carefully they're going to examine it. Which is not what you want to go through when you have just incurred a claim for USD10,000.

Fully-underwritten policies ask very detailed health questions on the application form and may even ask for doctors' reports. Based on all the information they get, the insurance company may decide to:

- Accept you with no exclusions or conditions;
- Accept you with an increase the premium;
- Accept you with an exclusion for a specific medical condition; or
- Reject you.

It always makes good sense to disclose pre-existing conditions on your application form even if the application doesn't ask about them. Then, the insurance company will find it harder to deny a claim for a pre-existing condition if they didn't exclude it when they approved your application.