6 Reasons Health Insurance Policies Don’t Succeed

The purpose of a health insurance plan is to provide timely and adequate financial support during medical emergencies.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*(In 120+ cities)
  • Relationship manager For every customer
  • 24*7 claims assistance In 30 mins. guaranteed*
  • Instant policy issuance No medical tests*

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
Find affordable plans with up to 25% Discount**
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      valid-mobile-number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium

      Policyholders often lament that their health insurance plans do not serve the requisite purpose despite the fat insurance premiums they pay.

      Health Insurance Policies

      This is because frequently, in times of pressing medical situations, either the health insurance plan does not offer sufficient coverage or the claim is denied altogether by the insurer.

      Although insurers are sometimes to blame due to lack of transparency or loopholes that policyholders fail to observe, it is also true that at other times, the fault lies either with the policyholders or the process/circumstances under which the health insurance plan is purchased.

       

      Here are some of the most common reasons why health insurance policies fail to succeed:
      Insufficient cover, low premiums

      To factor in the ever-growing medical inflation, it is crucial that more than adequate cover be taken while buying a health insurance policy. Without sufficient cover, even the best health insurance policy is only a piece of paper without any value.

      For instance, a health plan with a cover for Rs. 3 lakhs creates a huge setback if a person suffers major health issues like a cardiac or brain surgery, which costs up to Rs. 6 lakhs. In these cases, despite having a health insurance plan, the inadequate medical cover leads to financial stress.

      Also, people generally have an impression that a low health insurance premium translates to a good deal.
      In reality, the reverse is true - lower premiums mean lower benefits. The insurance company may not provide coverage for both pre and post hospitalization expenses, put a limit on specific surgeries or hospital room expenses, or completely exclude certain diseases from the policy coverage. Such restrictions offset the benefits of a health insurance plan.

      The fine print

      It usually seems like a task to go through an insurance policy’s technical terms and conditions. However, to get a fair deal, it is important to read all terms and conditions in detail to know our rights and understand what exactly we are signing up for.

      For instance, some policies have a waiting period clause stating that if there are any pre-existing diseases, then before filing the claim, the policyholder will have to wait a minimum of 12 months from the time of policy commencement. Also, hospital room/ICU charges are sometimes paid out as a pre-defined percentage and not at actuals. If a policyholder goes ahead and files a claim without being aware of such clauses, the claim will be rejected.

      Hasty decisions

      Most people are unaware of the different health insurance plans available and the offerings/options that come along as a package deal. People, therefore, tend to hastily purchase the first health insurance plan they come across without giving it a serious thought. This leads to an incorrect, unsuitable health plan purchased in haste either due to one’s own lack of awareness or possibly due to the insurance agents’ persuasion strategies.

      Not making comparisons

      Insurance agents mostly sell policies in line with their own priorities rather than the customer’s expectations, needs, and requirements. They usually focus on having people buy those health plans from which they can earn higher commissions. Hence, not comparing different policies and going blindly by the agent’s word may lead to disappointment in the future.

      Not knowing enough

      One of the biggest blunders people sometimes make is not researching enough on their own about various insurance products available in the market. It is always wise to do maximum research, draw comparisons, and find a health insurance policy that is in sync with yours and your family’s specific requirements.

      The internet offers a wealth of information where you can find various policies, compare, understand, and decide – all at the click of a button. Making comparisons between different options can help in getting the best and customized health insurance plan with the best offerings/inclusions at the best prices.

      More than a tax-saving instrument

      Many of us believe that insurance is yet another tax-saving instrument. This leads to people only considering the premium amount without taking into account how useful the policy will actually be towards covering medical expenses in times of real need.

      One may think they have bought a great policy by looking at the low premium payable, whereas the policy may not include essentialities like pre-existing disease coverage etc. This leads to bigger expenses in times of medical emergencies, despite having health insurance.

      Avoiding these mistakes and exercising caution while purchasing a health insurance plan ensures that the policy helps overcome financial obstacles during a medical crisis.

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Does Aditya Birla Health Insurance Cover Dental Treatments?

      17 May 2024

      Dental insurance is vital in maintaining oral health by covering
      Read more
      Does Niva Bupa Health Insurance Cover Dental Treatments?

      06 May 2024

      Dental insurance covers regular dental check-ups and treatments to
      Read more
      Surgeries Covered by TATA AIG Health Insurance Plans

      26 Apr 2024

      Amidst the escalating healthcare costs nationwide, managing the
      Read more
      Surgeries Covered by Liberty Health Insurance Plans

      26 Apr 2024

      Liberty General Insurance Limited offers a range of comprehensive
      Read more
      Does Care Health Insurance Cover Dental Treatments?

      26 Apr 2024

      Healthy teeth and gums can go a long way to maintaining oral
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      Best Health Insurance Plans for Senior Citizens
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      Does Health Insurance Provide Coverage for LASIK Eye Surgery?
      A vast majority of the Indian population is suffering from vision problems. For some of them, LASIK eye surgery is
      Read more
      Zero Waiting Period in Health Insurance Plans
      Every medical insurance plan comes with a few terms & conditions, and the waiting period is one of them. A
      Read more
      Heart Surgery Cost in India
      Heart diseases are the leading cause of death across the globe. As per a survey by the World Health Organisation
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL