Health insurance policies have become a requirement for all Indians. The rising cost of living, busy lifestyles, high stress, and deteriorating environmental conditions have all contributed to a situation in which visits to the doctor, or even the hospital, have become routine.
Many people, in their haste to protect themselves and their families from high medical costs, overlook key aspects of a health insurance policy, only to come to regret it later.
Here are some of the most common errors that people make:
- Insufficient coverage
Purchasing a health insurance policy is insufficient. It is important to ensure that the coverage amount is adequate. Many people deliberately choose a lower sum insured to keep their monthly premium outlay as low as possible. This can be a costly mistake in an emergency, as one will realise that the coverage is insufficient. The individual will then have no choice but to meet the expenses by withdrawing funds from his or her savings.
- Not choosing comprehensive cover
Basic health insurance policies are the most commonly purchased. These insurance plans only provide basic coverage for a limited number of medical treatments and services. These plans are popular primarily because the premiums are significantly lower.
However, the unfortunate reality is that these basic coverage health insurance policies are woefully inadequate in protecting you from a wide range of medical conditions. These basic plans do not cover a wide range of medical treatments and services. The costs of treating accidental injuries, critical illness treatment, ambulance fees, hospitalization expenses, long-term treatments, and so on, for example, are rarely covered by basic health insurance plans. Even when they were included, they only provided limited coverage.
You can enjoy comprehensive coverage in the future by adding a critical illness cover and an accidental injury cover.
- Not disclosing all medical conditions
Many people make the mistake of concealing their medical history when purchasing a health plan. This is frequently due to their fear of rejection, longer waiting periods, or high premiums. However, doing so can be extremely harmful because your insurance claims may be denied when you are most in need due to pre-existing conditions or undisclosed medical information.
- Ignoring terms and conditions
People make a big mistake when they fail to read the policy’s terms and conditions and discover something years later that has a negative impact on their entire financial plan. You must thoroughly read the policy’s fine print to gain a general understanding of what you are purchasing and how it will affect you in the future.
- Not comparing plans
How would you know what is best for you if you didn’t consider all of your options? Everyone has unique requirements and financial circumstances. Purchasing a health insurance policy solely because it is the same scheme that a friend or relative has purchased is a grave mistake. You should always buy health insurance after assessing your future needs and comparing different policies to determine which plan is best for you.
- Insufficient research
With the advancement of technology, every detail is now accessible online. According to experts, this is where research comes into play. Comparing plans and reading the fine print of each policy has become important and must be considered before selecting a plan.
- Purchasing only in old age
To avoid an unexpected medical emergency or large premium payments for coverage later in life, choose a health plan when you are young so that you have broader coverage and the waiting periods are over before the actual need arises.
The best way to avoid these common blunders is to carefully read policy documents and make informed decisions about your health insurance policy. It is best to avoid these blunders during the purchasing process so that you do not lose your peace of mind during claim settlement. Please do not hesitate to contact health insurance experts if you have any questions about health insurance.
Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less traveled territories.