Health insurance is considered one of the best financial tools you can use to protect yourself against the exponentially rising healthcare costs in India. For a very long time, the majority of the Indian population did not have access to health insurance. The COVID-19 pandemic forced people to change their perspectives, making health insurance a priority for people across India.
However, buying health insurance can be a complicated process involving a lot of paperwork. You also need to read through all the terms and conditions of an insurance policy to make sure that everything is in order and you are getting all the features you have been promised. Let’s take a look at some of the common mistakes that people make when buying a health insurance plan and how you can avoid them.
Common Health Insurance Mistakes You Must Avoid
- Getting an Inadequate Policy: A common mistake that many people make when buying a health insurance policy is choosing an insurance plan that does not provide enough financial coverage. Most people try to look for an insurance policy with cheaper premiums but do not take into account that plans with cheaper premiums have lower coverage. When buying an insurance policy, you should opt for a plan that has more than enough coverage for you and your family. It is generally recommended that one should get health insurance coverage with a cover of 1 crore for adequate protection.
- Not Reading the Fine Print: Reading the insurance policy document carefully is important for understanding your insurance plan. The policy document contains a list of inclusions and exclusions that you need to go through. You need to make sure that all of the features that you are looking for have been added to the policy document. You also need to see that there are no additional charges or loopholes that you did not sign up for or weren’t made aware of at the time of buying your policy.
- Ignoring Co-Pay: Many insurance plans have a co-pay clause where the policyholder needs to pay a portion of the medical costs and the insurance company pays the remainder of the expenses. Make sure you do not overlook the co-pay clause or you might end up paying a lot of money in the form of a portion of hospital bills. A better option is to buy an insurance policy with a minimal or no co-pay clause.
- Lying About Medical History: Insurance companies decide your premiums based on your age, health and medical history. Many people who buy insurance tend to hide their medical history out of fear that their insurance claims might get rejected or they will have to pay higher premiums. However, at the time of making an insurance claim, if the insurance company finds out that you lied about your medical history, they will reject your claim and you won’t get any insurance settlement. You should always reveal all the details about your medical history at the time of buying health insurance.
- Depending on Employee Insurance: Most corporations and large firms offer health insurance to employees and their families. However, these insurance plans are part of group insurance policies and often do not have adequate coverage for major hospitalization expenses. You should not solely rely on your employee insurance and get an individual or a family floater health insurance plan for yourself and your family to get enhanced protection.
- Picking the Wrong Insurance Company: Often, people buying insurance for the first time may end up choosing a less reputed company. You need to research an insurance provider and make sure they are a reputed insurance agency with a high claim settlement ratio so that you don’t face any problems during an insurance claim.
Make sure to remember the above points the next time you are looking to buy a new health insurance plan. A good idea is to make a list of your major requirements and then look for a plan that fulfils all of those. Avoiding these simple mistakes will help you get the insurance plan that you need without compromising on any features or benefits.