Know when to finally let go of your old insurance statements.
Maintaining up-to-date insurance records is important for several reasons. First, you want to maintain accurate records in the event of a human or clerical error. Second, you want to be as informed as possible of the product for which you are paying. Third, while new technologies make it easy to request information about an insurance policy, such advances can also impede billing and other processes if lost, deleted or mismanaged.
Identification
When enrolling in a new insurance policy or managing an existing one, retain all original statements including explanation of benefits (EOB) forms. Retain EOBs in a storage file in your home or office. If, for example, you have primary and secondary health insurance, maintain a separate file for each policy.
Create a filing system for current, inactive and permanent files. File statements that prove you've met your deductible for the year along with statements that contain the current year's amendments in your current file. As a general rule of thumb, use your current file for insurance documents that are less than three years old. Create an inactive file for insurance statements and settled claims that are at least three years old. If an insurance provider erroneously reports a claim as unpaid, you can quickly find it using this filing system. Keep sensitive documents and very important papers such as original policies in your permanent file.
Time Frame
Expect to retain all insurance statements for up to five years. According to the Extension organization, "It is not uncommon for some medical providers to send bills long after a medical service has been provided. Having EOBs on file can help document the status of previous medical claims." This is also true for home, auto, property and life insurance policies, especially if you have a dispute over a bill.
Prevention/Solution
Contact your insurance provider if, for example, you receive a collection notification for non-payment. Your insurance company's claims department can investigate the claim. Provide a copy of your original statement and ask your insurance provider to temporarily suspend the collection until an investigation into the matter is complete. By sending the collection, it will not appear on your credit report.
Warning
It is okay to discard general statements that do not reflect claim information, an explanation of benefits or policy changes. As a precaution, shred your insurance statements to prevent a third party from gaining access to your policy number.
Considerations
The majority of all major insurance companies provide online statements. Review your online or paper statements for information about your insurance policy including benefits, rates, billing, claims, coverages and plan information. You can also track policy changes. Simply compare old insurance statements with newer ones and contact your insurance company with any inquiries.
Tags: insurance statements, insurance policy, insurance provider, statements that, your insurance, your insurance, current file
