Common Health Insurance Mistakes

Most common health insurance mistakes even smart people make

Common Health Insurance Mistakes When it comes to buying health insurance plans.

Even smart people make several mistakes that result in the cancellation of claims or heavy medical expenses.

Common Health Insurance Mistakes

The devastation cause by Covid-19 pandemic since last year has led to growing awareness.

Demand for health insurance plans in India.

In the wake of rising medical expenses, health insurance plans have become a necessity in today’s times.

If you are cover under a health insurance plan.

You can protect yourself financially against lifestyle illnesses, hereditary diseases and even accidental injuries.

However, when it comes to buying health insurance plans.

Even smart people make several mistakes that result in the cancellation of claims or heavy medical expenses.

Here’s a look at some of the top health insurance mistakes made even by smart people:

Not having a family health insurance

According to Vivek Narain, Co-founder & Promoter, Sana Health Solutions.

The first common mistake even smart people make in health insurance is to not have a family health insurance at all, or have a low sum insured.

When they are young, they have the mistake belief that they are unlikely to be hospitalized for any serious illness.

They look at health insurance premium as an unnecessary expense.

Not as a mandatory saving towards hospitalization expenses in future.

Reliance on employer’s Group health insurance policy

Salaried people mostly only on their employer’s group health insurance, without realizing that they will be without cover while switching jobs.

In particular, they miss the fact that it will be much more difficult.

Expensive to get family health insurance after retirement when they will need it the most!

Not declaring pre-existing medical conditions, or tobacco habits

One of the most common mistakes that people make is to not fully declare pre-existing medical conditions.

Risky habits (such as tobacco or excessive alcohol consumption) at the time of applying for individual or family health insurance.

They feel that declaring these facts can lead to medical tests or higher premium or both.

If they keep quiet about it nobody would know.

However, they ignore the fact that insurers can deny claims or even cancel a policy if the insure is hospitalized.

The doctors detect a pre-existing medical condition or risky habit.

In fact, they must fully declare any medical conditions or habits even at the time of renewal.

In case they are seeking an increase in sum insured.

Blindly trusting insurance local insurance agents

Another common mistake people make while buying family health insurance.

Is to blindly trust the “friendly neighborhood agent” in the mistaken notion that they will get their claims approve when the need arises.

The fact is that many claims get decline or reduced due to conditions.

Sub-limits that are state in the details of the policy wording.

Which they often skip as too difficult to read and interpret.

Common Health Insurance Mistakes

Health insurance for tax benefits

Buying a health insurance plan only for the motive of saving tax always leads to an idea.

Having an inadequate insurance cover.

The premium you pay towards your health insurance is indeed tax-deductible under section 80D.

The sole purpose of a medical insurance plan should be to cover your expenses in case of an emergency and not tax benefits.

The health insurance benefits are unique and help you in several other ways.

Lying about the medical background

For fear of the insurance company rejecting their insurance application.

People tend to lie about their medical history by concealing relevant information.

Hiding information about existing medical conditions could lead to rejection of your claim.

The insurance company does its due diligence and background checks.

You should reveal all the information about your health history while buying a health plan.

Not comparing the best plans

How would you know what is best for you without looking at different alternatives?

Everyone has different needs and financial backgrounds.

Buying a health insurance policy only because it is the same scheme your friend or your relative has bought would be a grave mistake.

You should always purchase health insurance after assessing your future needs.

Comparing different policies with each other to know what plan would be a perfect fit for you.

Not adding “Riders”

To some extent, it could be true that you are healthy and don’t need to visit a doctor regularly.

However, what can be said about accidents and illnesses?

Riders provide you with extra insurance amount if you suffer from an accident or illness mention regarding the rider.

You should always consider adding a rider to your health insurance plan.

As you can never anticipate accidents and critical illnesses.

This would provide you with an extra amount apart from your insurance cover to pay the expensive medical bills of the hospital.

Young people do not need insurance

While it may be true that young people are healthier.

It is also true that buying online health insurance should be the primary priority of everyone, irrespective of the age.

As life is full of uncertain events, they do not choose between young and old.

You should consider buying a health insurance plan even if you are in your 20s or 30s.

Buying a health insurance policy online costs less, particularly for younger age groups.

Common Health Insurance Mistakes

Not reading the policy terms

People make a big mistake when they skip on reading the terms and conditions of the policy.

Find out something years later that negatively affects their whole financial plan.

You must read the fine print of the policy in detail to get a general idea of what you are buying.

How it will affect you in the future.

Buying an additional policy

People buy an additional health insurance policy to extend their coverage further.

In the long run, it is not cost-efficient and leads to small savings.

If you want to extend your protection, you should avail of the option of “Top-up,”

Which will allow you to prolong the coverage of your existing policy.

Not knowing about discounts

During the term of the health insurance coverage.

You may be entitle to specific discounts from the life insurance company.

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