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Avoid these common mistakes when you buya new health insurance policy

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Est read time 2 minutes, Published on 26th Feb 2021

Health insurance is one of the most important policies for individuals and families. Considering the ever-increasing health problems andmedical costs, it is imperativeto take a health plan for yourself and your family for quality and timely treatment during medical emergencies. However, selecting a health insurance policy is a task that should be done meticulously after considering the benefits and limitations. It is also important to avoid the following common mistakes when choosing a health cover.

Common mistakes to avoid when buying health insurance

1. Hiding pre-existing conditions:Not sharing the medical history or hiding pre-existing diseases is one of the most common mistakes people make when buying a health plan. They do this to avoid paying a higher premium amount. Many times, health insurance buyers are apprehensive about disclosing their pre-existing conditions. If the insurance company comes to know about the hidden facts, they may reject all future claims of the policyholders.Hence, buyers must be honest with the insurance company to build trust and avoid claim rejection.

2. Ignoring the diseases excluded from the health plan:Some policy buyers do not go through policy exclusions or the list of diseases excluded from the policy. At times, non-disclosure by the insurance company may also cause this confusion. Hence, remember to check the diseases that are not included in the policy. In case of doubts, you should get in touch with the insurance company.

3. Underinsuring yourself and your family: Underinsuring yourself and your loved ones only to lower the premium costs can lead to heavy financial loss in case of medical emergencies and multiple hospitalisations. Considering medical inflation, a health plan of INR 2 lakh or 3 lakh is not enough. If you reside in a small town, you must opt for a minimum of INR 5 lakh health plan. For metro-dwellers, experts suggest a minimum health insurance plan of INR 10 lakh.

4. Not looking beyond basic health plan: While experts always recommend a comprehensive health plan, most individuals ignore this important point and choose a basic coverage to save money. It is important to understand the benefits of critical illness rider, personal accident rider, and more along with a basic health plan. Apart from these, you must choose a health plan that offers features like cashless hospitalisation, ambulance charges and domiciliary hospitalisation.

5. Considering health insurance as a tax-saving tool: Some individuals take a health plan to save taxes. Although it does offer some tax relief under Section 80D of the Income Tax Act, this should not be the only reason to buy health insurance. You must consider all the important factors and take a health plan with sufficient coverage.

Why is it important to avoid mistakes when purchasing a health plan?

Accidents and other medical emergencies can cause a lot of anxiety for family members. Hence, it is important to consider all major factors and buy an adequate health plan. Trust a reliable insurance company and never compromise on quality. Also, remember to read the policy inclusions and exclusions carefully so that you are well aware of the benefits and drawbacks before you make a purchase.

What are the limits and sub-limits of health insurance?

• In health insurance, limit is the maximum amount of money your insurance company will pay towards your claim. If the coverage limit of your health plan is high, the premium will also be on the higher side.

• A sub-limit is a monetary cap or limitthe insurer places on your health insurance claim. The insurance company can place sub-limits on the doctor’s consultation fee, hospital room rent, ambulance charges, and more. Many insurance providers also place a sub-limit on certain pre-planned medical procedures, such as knee ligament reconstruction and cataract removal.

Conclusion:

When you are taking a health insurance policy, remember to read the policy documents carefully and choose adequate coverage for yourself and your loved ones. Also, be honest about the pre-existing diseases and other important details to avoid claim rejection and other hassles.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.