Common Mistakes Made When Buying Health Insurance

Buying a health insurance policy is essential to shield the health of individuals against high cost of treatments. The process of purchasing a health insurance cover has become quick and smooth with the advancements in technology, but there is some research work that must be done by the customers before investing in a plan. You must not buy a health insurance plan before analyzing your requirements and considering the important factors. Customers are usually advised to conduct their own research and compare various plans before purchasing a suitable cover for themselves and their loved ones. 

There are several factors like age of the applicant, network hospitals, pre-existing diseases, claim settlement ratio, additional benefits, etc. which must be considered before buying a health insurance cover. Sometimes customers commit some common mistakes due to which they end up purchasing policies that are not of great use at the time of claim settlement. You must be aware of such mistakes which are commonly committed by maximum customers, to avoid it as much as possible. 

Common Mistakes Made By The Customers While Buying A Health Insurance Plan

Following are some of the common mistakes which are made by the policyholder when purchasing a health insurance cover: 

1. Investing In Insufficient Coverage

It is very important for the customers to analyze their needs based on their medical history, pre-existing diseases, or critical illness, to get a suitable health insurance cover. You should not buy a policy which is too cheap or too expensive, instead you must buy a plan which covers all your requirements at an affordable price. Also, you must not conceal your medical history from the insurer, as it can cause immense problems when seeking treatment for the same medical reasons. 

2. Concealing Medical History 

You must not lie or conceal your medical history or any pre-existing diseases. If someone does so, the insurer can take legal actions against them and the coverage for the treatment of any pre-existing critical disease will not be provided by the insurance provider. Hiding your medical condition counts as fraud and can affect your profile as a policyholder. 

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3. Considering Only Tax Deduction Benefits 

You should not invest in a health insurance policy just for the sake of tax deduction benefits. The main objective of getting a health insurance policy must be to secure your health under a comprehensive plan so that you can claim maximum benefits at the time of a medical emergency. Buying a policy solely to save your taxes can lead you to purchase a policy with inadequate coverage. 

4. Not Considering Zone Based Policy Pricing

You must buy a health insurance policy based on the city zones, as the treatment cost in a metro city is higher than that of a normal city. Therefore, if you live in a metro city, you will need a plan with a higher sum assured to cover your expenses. Some insurers restrict the coverage of the policy of a person moving from a normal city to metro city for advanced treatments. 

5. Ignoring Co-Payment Clause

According to the co-payment clause of a health insurance policy, the policyholder has to share the cost of medical treatments to a certain percentage like 10-20%. Policies with higher co-pay have a lower premium. This clause is applicable on certain conditions like expensive medical treatments, treatments in non-network hospitals, metro cities, etc. 

6. Choosing An Additional Cover For Enhanced Coverage 

To enhance the coverage of your existing health insurance policy, you can buy a super top up plan instead of investing in an additional cover as it is not a cost-effective alternative. You can choose among other wise options like top up plans based on your requirements. 

7. Not Going Through The Policy Terms

You must always read the policy related documents carefully to understand the terms and conditions of your policy. You must know about the clauses included and excluded from your purchased policy to avoid any confusion at the time of claim settlement process. 

8. Not Buying A Health Insurance Policy At A Young Age

The premium rate of the health insurance plans increases with the increase in age of the applicant due to their increasing vulnerability to contract a life-threatening disease. Also, the health insurance plans come with a waiting period which can be overcome if the plan is bought early. Therefore, you must get a plan as soon as you start earning. 

Conclusion 

You must always keep these common mistakes in your mind and try to avoid them when investing in a health insurance plan. The key to get a suitable health insurance policy is to know your demands and requirements from the cover and sort them out accordingly. 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.