Proration

Relating to health insurance, this is when the benefits are adjusted due to a mistake in the amount of the premiums paid or the existence of other insurance covering the same accident or disability.

This is why it is best to discuss what you are purchasing compared to what you already have in place and what you want for the future. Talk to your financial adviser, accountant, agent or broker to help you choose what will actually pay when you need it.

How frustrating to have paid premiums for years on a coverage to find out that you will not receive the benefit due to an oversight!