10 Common Mistakes to Avoid While Buying Health Insurance
n a fast-paced world, where the cost of living is on an incessant rise, having a health insurance policy becomes a must. You must have been thinking of buying comprehensive health insurance for you or a loved one, especially after the COVID-19 outbreak. But we understand that buying health insurance is not an easy task. A variety of factors have to be considered before making the final decision and with multiple insurance companies, choosing the best medical insurance policy can be a bit difficult. Hasty decisions may lead you to choose an ineffective health insurance plan that does not meet your needs.
Let’s take a look at some of the common mistakes that must be avoided to ensure good policy experience
1. Insufficient research
Many consumers purchase a health insurance policy, in a hurry without fully grasping the terms and conditions of the policy. It’s also common for people to forget to compare insurance and instead go for the first one they come across. People should do an extensive study and compare various plans before selecting a health insurance plan. For example, Family floater plans are more suited to families with many children than solo plans.
2. Insufficient Coverage
Many consumers purchase insurance plans with restricted coverage that may not provide optimal protection, in order to save money on premiums. In the event of a medical emergency, a person’s limited insurance coverage may force them to foot the payment on their own. Consider the size of the family, medical history, projected medical costs, hospitalization costs, and flexibility before making a final decision. Adequate insurance coverage will protect your funds in the event of a medical emergency and will relieve you of the financial strain that medical costs can cause.
3. Hiding Medical History
Individuals make the mistake of hiding their medical history when they buy a health insurance policy. The primary reason is fear of application rejection or higher health insurance premiums. This could be problematic in the case of a claim denial based on knowledge of concealed medical facts. Contracts for health insurance are based on the information provided by the insured at the time of policy acquisition and are concluded with the utmost good faith. While disclosing medical history may result in a small premium rise, it removes the possibility of a claim being denied in the future.
4. Buying a Standard Policy
Insurance companies provide standard coverage under the medical insurance policy. However, good comprehensive health insurance also comes with coverage for many illnesses and situations with add-ons beyond the basic policy. While the standard policy’s premium is less expensive, it does not cover any specific medical conditions or situations until you purchase add-ons. Examine the insurer’s optional coverage options and select the ones that are most appropriate for you. Critical illness and personal injury coverage are well worth the additional premium.
5. Not Comparing Insurers or Plans
It’s important to compare medical insurance plans before making the final decision of buying a policy. It is possible that another insurance provider will provide you with higher coverage at a lower rate. When the time comes to renew health insurance, it’s a good idea to check around to see if you can save money by switching providers. Additionally, you can easily transfer your benefits from your prior comprehensive health insurance provider to your new one. It’s better to buy insurance online for faster processing.
6. Not Checking the Inclusions and Exclusions
Individuals usually focus exclusively on the benefits included in their health insurance coverage, when they buy a health insurance policy. When the time comes to file a claim, failure to read the exclusion list will result in significant financial loss. Provisions and exclusions in a health insurance plan require a thorough understanding. Additionally, it assists in making an informed decision when looking for health insurance coverage. Each health insurance plan has a 15-day “free look” period during which you can evaluate the plan risk-free. During this time period, the insured may review the policy and ensure that they understand all of the provisions.
7. Not Reading Terms and Conditions
Many customers overlook thoroughly reviewing the policy-related material before acquiring a health insurance policy. Policy documents contain all pertinent information that a policyholder should be aware of, such as product characteristics, terms, exclusions, and inclusions. When you apply for health insurance, ensure that you have thoroughly read all of the policy documentation to avoid any future misunderstandings.
8. Overlooking Sub-Limits
Insurance companies incorporate sub-limits into their liability threshold limitations to safeguard themselves in certain circumstances. They are defined as a monetary value on a specific illness or a percentage of the insured amount. The sub-limit may be active on hospital room rent, ambulance expenditures, physician consultation fees, and expensive medical treatments such as knee replacements or kidney transplants. Hence, before finalizing the policy, it’s a good idea to double-check the policy’s sub-limit provision.
9. Buying Only in Old Age
No one can predict medical energies, a young individual or an aged person. What they can do is protect themselves with precaution by investing in health insurance. One emergency can cause severe financial and emotional distress to you and your family. Policies for those under the age of 45 are plentiful, simple to obtain, and less expensive than those for the elderly. Early health insurance purchase also has the advantage of allowing one to simply cover the waiting period in times when triggering a health insurance policy is improbable, providing for full coverage at a young age.
10. Investing Only to Save Taxes
Though it’s nothing wrong to save taxes with a health insurance policy, that cannot be your only reason to buy health insurance. Tax deductions are available for health insurance premiums paid by individuals under the Internal Tax Act, Section 80D. While the tax advantages of insurance plans should be recognized, assessing an insurance policy solely on the basis of its tax quotient is unwise. Everyone should have appropriate health insurance to cover their own and their family’s needs in the event of a medical emergency.
Conclusion
You can buy the best health insurance plans by paying attention to these simple yet important aspects. Buying health insurance is a decision to be made with patience and thorough research. Spending a bit more time and putting in a tiny bit more effort can give you and your family the best security you need and deserve. The post 10 Common Mistakes to Avoid While Buying Health Insurance appeared first on Dumb Little Man.