common misconceptions about health insurance

10 common misconceptions about health insurance

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Health Insurance is one of the most bought insurance products. However, when it comes to awareness about health insurance policies, there are a lot of misconceptions amongst policy buyers.

Before you seek a fresh health insurance cover or assess your existing policy coverage, we have shattered some myths below to help you choose right products:

1. I am healthy, I don’t need health insurance

Though it may be true that you are taking good care of yourself and is fit, but unforeseen events such as accidents and illnesses such as dengue and malaria can hit anyone. It is not easy to foot the complete hospital bill by yourself and a 48-hour hospitalization may force you to pull out all your savings.

2. I will get paid only if I am hospitalised

Many insurance companies put a cap in terms of minimum hours of hospitalization, but it is not necessary that you may have to stay in the hospital even if you undergo a surgery. For instance, for cataract or dental operations, the patient does not need to be hospitalized for 24 hours. Such procedures are called day care procedures and are covered under the health insurance umbrella.

3. Cashless is the answer

Many health insurance policy buyers feel that a cashless cover is the answer to all their medical worries. To avail any of the cashless benefits of your health insurance policy, you first need to check whether the hospital you are admitted into is a partner in the cashless program of your insurance provider or not. Thus, your cashless program will not work if the hospital is a non-network hospital.

4. Maternity program won’t be covered

Another misconception amongst policy buyers is that pregnancy is not covered in their health insurance plan. This was the case few years ago, however, many insurance companies these days have started to cover pregnancy and some other maternity benefits in their health insurance cover.

5. Buying health insurance plan for tax savings

Many people have this misconception that any kind of insurance is primarily for saving tax and coverage comes as a secondary benefit. Buying health policy only for tax savings purpose will not be too beneficial.  It is advisable that you buy a  health insurance policy for insuring  against any large scale healthcare expenditure rather than saving tax. Thus, if you invest wisely, your health insurance policy could save you much more than only tax.

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6. No changes in Mediclaim Terms

Another misconception amongst health insurance buyers is that they think the premiums, terms, benefits and procedures of their health insurance will not change. Some changes or tweaks are always expected with such insurance products in a five year span. So always make sure that you are updated with changes in the terms and procedures of your health insurance policy.

7. Pre-existing diseases

Many health insurance buyers fret about the pre-existing disease part of a policy. However, every health insurance these days comes with a pre-existing disease clause, which once over, will cover your pre-existing disease or health condition as mentioned in the policy. Also, many insurance companies expect the prospective customer to undergo a thorough medical examination and if you do not have any pre-existing disease then the clause is not applicable to you.

8. Capping on room rent is bad

Capping on room rent is actually not bad. Mostly, the capping is dependent on or is equivalent to the amount of premium you are paying, how much sum insured you have opted for and which health insurance policy you are buying. Thus, capping on room rent should not be a reason to reject a health policy as every plan and sum insured has different limitations for room rent and intensive care unit (ICU) charges.

9. Buying policy only is risky

A lot of individuals are of the view that buying health insurance online is risky. However, when you buy a policy online nothing is hidden from you and the pain of completing long paperwork is reduced. Also, you can opt various online methods of transactions such as credit card, debit card and net banking.

10. Only the earning member of the family needs insurance

This is another misconception amongst policy seekers that a health insurance policy is needed only for the main earning member of the family. However, health insurance should cover the entire family, including parents, spouse and children of the consumer.

Read More-: Best Medical Insurance Policies by Indian Health Insurers

Therefore, it is important that you do read the fine print carefully before investing in a health insurance policy as a general lack of understanding may lead to preconceived notions which may not be true.

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