Common Health Insurance Mistakes and How to Correct Them

Current Scenario of Health Insurance in India

Regrettably, only 17 percent our population has a coverage for medicare bill. It can be because only these people understand that healthcare expenses are getting costlier by the day, and they must protect their savings from any medically-induced financial emergency. Moreover, the high cost of quality medical care has made it very difficult for a common man to pay his healthcare costs. This is where mediclaim insurance plan comes to the rescue.

It is even more important for senior citizens in India to buy mediclaim for senior citizen. Because of their old age and deteriorating immune system, they are prone to frequent hospitalization. In fact, senior citizens have limited funds which can get syphoned off after a few hospitalizations. Thanks to senior citizen health insurance plans, which can help them manage healthcare expenses and avoid undue financial stress.

Top 8 Mistakes to Avoid While Buying Health Insurance

Buying health insurance plans is a risky business. One wrong move can lead you to a financial crisis or force you to compromise on the quality of medicare services. Here are a few frequently committed health insurance mistakes along with the ways to correct them.

1. Mistake 1- Focusing Solely on the Insurance Premium and Deductible

   Generally, people commit the error of selecting a plan based on its premium and deductible. These factors lure several insurance buyers. Such buyers are disappointed at the time of claim settlement as the coverage covers only a part of the expenses and the insured is supposed to bear the remaining amount from his/her pocket.

   What Should You Do? At the time of buying an insurance plan, consider your ability to cover the deductibles at the time of a health emergency. If you cannot do that, then go for a plan that comes with lower deductibles.

2. Mistake 2- Blindly Buying Your Friends or Colleagues' Suggestion

   Our medical condition and medical history differ from our friends' and colleagues'. Insurance expectations are so individualistic that your insurance plan might not fulfil the insurance expectations of your friend.

   What Should You Do? Before selecting a plan suggested by a friend or an acquaintance, check whether it fulfils your insurance expectations and medical needs. Compare it with other policies so that you know what is offered in the insurance market and what suits your needs.

3. Mistake 3- Purchasing Health Insurance Only for Tax Benefits

   A large number of the people buy a health insurance plan just to avail the tax benefit under Section 80D of the Income Tax Act, 1961. True, it does offer tax benefits, but the primary objective while purchasing a medical insurance plan should be the coverage of your health needs and financial protection against medical emergencies.

   What Should You Do? By focusing solely on tax, you will end up purchasing a health plan that does not fulfil your health needs and will provide you with insufficient coverage.

4. Mistake 4- Lying About Pre-existing Illnesses While Buying the Policy

   Some insurance buyers falsify their health information while filling the proposal form. They think that it will save them from high premiums, or it will help their cause in acceptance of their proposal form.

   Insurance providers check medical details thoroughly before giving a green signal. Also, some insurance providers conduct a medical screening before approving a proposal. In that case, your proposal is liable to get cancelled.

   What Should You Do? It is important to disclose your medical information while filling out the proposal form and select the plan that is right for you.

5. Mistake 5-Error-Co-payment and the Fine Print

   Co-payment is a part of medical expenses that an insured has to bear by himself at the time of claim settlement. Co-payment and its terms vary from insurance provider to insurance provider.

   What Should You Do? Carefully read the fine print of the policy document and pay attention to the exclusions so that you do not have any doubts.

6. Mistake 6 - Waiting Until Old Age to Buy Health Insurance

   Many people delay purchasing health insurance, assuming they will not need it until they are older. This approach can be faulty, as no one can accurately predict when a medical emergency might arise. Without insurance in younger years, individuals may face high costs in case of an unexpected medical issue.

   What Should You Do? It is wise to invest in health insurance at a young age as it will not only provide financial protection for medical emergencies but will also attract lower premiums. In fact, you can complete the waiting periods for specific treatments when the chance of triggering a mediclaim insurance is minimal.

7. Mistake 7- Lack of Research

   Another common error people make is purchasing health insurance without thoroughly researching. Rushing into a plan without comparing different policies can result in insufficient coverage or unnecessary costs. Without adequate research, you may end up buying a health insurance plan that does not meet your specific needs or that comes with high premiums and limited benefits.

   What Should You Do? Take the time to thoroughly research and compare health policies before making a decision. Evaluate multiple plans, assess their features, and consider your personal and family health needs to find a policy that offers adequate coverage at a reasonable cost.

8. Mistake 8 - Overlooking Sub-Limits in Health Insurance Policies

   When choosing a medical insurance, many people overlook the sub-limits clause. Sub-limits set a cap on costs such as hospital room rent, ambulance services, and some medical procedures like knee replacements or transplants. This can limit the financial support you receive, even if the overall sum insured is substantial.

   What Should You Do? Always read the policy document thoroughly, especially the sub-limits clause, before finalizing any health insurance policy. Understanding these limits will help you know what and how much your insurer will cover.

Wrapping it up

Health insurance plans are purchased to have an extra line of financial defence against the ever-increasing medicare expenses. One can become over-insured or under-insured very easily. Hence, you must assess your insurance needs and the risk associated with the particular mediclaim policy before finalising it. Most importantly, you should compare various insurance plans so that you can come across the plan that offers maximum insurance coverage at minimum premium. Buying insurance is not a rocket science. You just have to pay a little attention to the fine print and be aware of your insurance needs.