Is it common for insurance companies to ask for 1st month's payment when you apply?

[traces7]

We're in the process of trying to find our own health insurance through an outside insurance company (not work provided).

I thought we had found a good one, the rates don't sound bad, but you have to send in a check for the first month's application. Is this normal? Makes me nervous, I guess you do get reimbursed if you're not accepted or you decide not to accept the insurance, but still. They may not even approve us. I tried last year with another company only to be denied. The 2 we applied with last year didn't require payment with application.

Dean Care (a Wisconsin based insurance co) is the name of the company.
http://www.deancare.com/insurance/find-plan/index.aspx

Here's more about my insurance dilemma on this thread
http://www.disboards.com/showthread.php?t=2681225&highlight=health+insurance

We may not even have time to try and apply with another company. We only have til April 1, so we might be stuck staying with my employee plan.

 

[princessnoelly]

I don't know about medical/dental but with car and home you do. It makes sense they would want cash in advance because if you get covered tomorrow and have a huge claim they want to verify you are paid up before they pay out.

But, I could be very wrong. It happens all the time.

 

[jgreco]

We had to pay in advance for ours.

 

[DaniB]

We also had to pay the 1st month in advance. AND now every time renewal comes around, we end up paying 2 months at once. The month before the renewal there is no payment so I just take that money aside to save for the double payment the next month.

 

[Melmac]

I have never heard of this until I applied for life insurance yesterday ... I needed to give the first month's premium and then I was covered as I walked out the door. I had to run to the bank to get the money - I don't really carry cash anymore

So, I guess it is not that unusual.

 

[Ephany]

We had too also.