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Home Articles 10 Mistakes to Avoid While Buying Health Insurance

10 Mistakes to Avoid While Buying Health Insurance

IndianMoney.com Research Team | Updated On Wednesday, July 17,2019, 05:45 PM

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10 Mistakes to Avoid While Buying Health Insurance

 

 

The health insurance sector in India has witnessed tremendous growth over the past few years. Unfortunately, many people are not aware on the latest changes. This is the reason why people commit mistakes while buying or renewing a health insurance policy.

When you avail a health insurance plan without completely understanding it, there could be problems with claim settlement. This article covers some of the common mistakes people make while buying health insurance.

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10 Mistakes to Avoid While Buying Health Insurance

1. Do Not Rely Only on the Employer’s Health Insurance Plan:

Employers usually offer health insurance to their employees. The health insurance plan offered by your employer may not be enough to cover your family. Don’t rely on employer health insurance. Avail an individual or family floater health insurance plan.

Family floater health insurance plans covers up to 4 children, including yourself and spouse. Some insurers allow you to cover parents as well. With a family floater policy, your entire family is safe.

See Also: Exclusions of Health Insurance Policy

2. Do Not Forget to Consider the Area of Residence

The cost of living differs across cities. For example, the cost of living in Mumbai, a metro city, is higher compared to smaller cities. The same goes with medical expenses. Let’s say you have moved to a metro city from a small city. You need more health insurance. If you are moving to a small city from a metro city, the same health cover may be retained. Insurers offer zone-based pricing. Pay attention to the place where you live in, before availing health insurance.

3. Do Not Hide the Facts

People with pre-existing diseases don’t disclose past medical history, believing premiums would rise. Don’t hide facts while availing health insurance as claim would be denied.

See Also: Health Insurance Benefits

4. Do Not Just Consider the Premium

It is not just the premiums; there are many other important aspects to be considered while availing health insurance. Consider inclusions and exclusions of the policy, the size of the health cover, the claim settlement ratio of the insurer, the waiting period for pre-existing ailments, the network of hospitals, the insurance needs of your family and so on. If you just look at the premiums, you may not get the health insurance plan you seek. Take the help of a financial advisor to pick health insurance plan.

5. Do Not Forget to Read the Terms and Conditions of the Policy

Many people don’t check health insurance plan and just rely on whatever has been explained to them. This is a big mistake. The section for the terms and conditions of the policy, cover crucial details like the restriction on hospital room rent, pre and post-hospitalization expenses, the duration of waiting period for pre-existing illnesses and so on.

See Also: How to Choose the Best Health Insurance Policy?

6. Not Just Tax Benefits

Yes, the premium paid for health insurance is tax deductible under Section 80D of the Income Tax Act, 1961. But, if you avail the policy only for the purpose of saving taxes, the plan does not offer the intended cover. The sole purpose of buying health insurance should be to cover hospitalization in case of medical emergencies.

7. Do Not be Influenced by Others

Don’t get influenced by others when availing health insurance. For instance, the policy availed by your friend may not be suitable be you. Don’t get taken in by the empty promises of insurance agents. The best thing you can do is compare the various types of health insurance policies offered in the market, understand their scope and choose the best one.

8. Do Not Skip Riders

Health insurance comes with certain riders like critical illness rider, hospital cash rider benefit, personal accidental rider, maternity and new born add-ons and so on. The riders help personalize the health insurance policy, according to requirements. Pick riders in health insurance, which are absolutely necessary.

See Also: Family Health Insurance Plan

9. Did You Renew the Policy?

Be sure to renew the health insurance policy. The policy is considered invalid or inactive when you do not renew it on or before the stipulated date. No claims are allowed on inactive health insurance plans.

10. Do Not Forget to Revise the Policy

Health insurance has to be revised and monitored in sync with current requirements. Modify the nominee details and the cover whenever required.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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