Health insurance has become an essential part of our family finances. Due to rising medical costs and an increasing incidence of lifestyle diseases, health insurance has become a much-needed investment for all families.
But many of us don’t think about small enough. Health insurance shopping is mostly online and comparing the 100 insurance policies available online can be exhaustive. This results in you getting the wrong strategy for your needs or failing to include all the necessary features that will work best for you and your family.
Health insurance is not a matter of personal needs. Many of you will be buying a family floater policy, as it is more affordable. That’s why you need to consider the needs of each family member. This helps you get the right sum insured and additional riders who can maximize the benefits of the policy.
There are several things to consider when buying a health insurance policy. Honestly, the list is quite long. So, instead of listing what to do, we decided to list the most important ‘what not to do’. This article is about the first 5 mistakes you should avoid when buying a health insurance policy. So, let’s get started!
5 Mistakes to Avoid while Buying a Health Insurance Policy
1. Insufficient Coverage
Avoid this common mistake that we all make every time while getting health policy. We do not think and get a health policy with less insurance. Due to the rising healthcare costs, we should consider treatment future costs for any disease. If you are choosing a family floater policy, then you must think about the age group of all the family members. Along with, ensure that the insurance can cover multiple treatments and hospital expenditures if the need appears.
You will have to pay higher premiums to get a higher sum assured, but it will be beneficial when you need it. There are some health insurance policies that automatically increase your sum insured for each claim-free year. So, shop for such policies in which you can get a higher sum assured for the same premium.
2. Ignoring Waiting Period And Exclusions
An important feature of a health insurance policy is the waiting period. Most of the policies have 2 years waiting period for pre-existing circumstances. So, check out the list of those ailments that have this waiting period. It will also be smart to buy policies that have dilute waiting periods so that you can get timely treatment.
The other aspect is exclusions. There is no point in taking out health insurance except for the most common ailments and treatments. Read the policy documents to understand what is included and excluded from your coverage. If you are aware of a situation that already exists and has been omitted from the policy, it is always best to look for a policy that covers that or at least part of it.
Additional Read: Features and Benefits of Life Insurance Plans
3. Not Paying Attention to the Co-pay Clause or the Deductibles
Every health insurance policy comes with a co-pay clause where you have to drift a definite percentage of the total cost. There are variations between this percentage from 10-50%. You need to check this percentage so that you do not have to bear the bulk of the cost.
There is also a deductibles clause where certain items on your final bill will not be paid by the insurance company. So it is better to check the amount of deduction. If you don’t check these two things, you may borrow a lot of costs instead of paying the insurance company.
4. Ignoring the Fine Print
Most people ensure that they understand what is included in their policy. But many don’t pay attention to the exclusions listed in the medical health insurance plan. It is important to understand policy coverage, but it is also important to understand policy exclusions.
Sometimes you don’t read the fine print on your health insurance policy when you purchased it. Even in this case, you deserve free viewing time. Almost every health insurance policy has a 15-day free look period. During this period, if you find any clauses problematic, you can cancel the plan and the company will refund your money according to your terms and conditions. Use this time to find out what you bought.
5. Not Disclosing your Previous Medical History in its Entirety to the Insurer
Some of you may try to hide your current medical condition or previous medical history when purchasing a health plan, for fear that the offer will be rejected or the premium will be higher. This is a common mistake because if the insurance company finds out during the claim that you intentionally misrepresented your medical history when you purchased the plan and the claim is for an existing condition, the claim will be rejected.
Insurance contracts are legally binding contracts based on the information you submit. As a result, always tell the truth while buying a health plan. Although a bad medical history may increase your premium, your claims will be respected. Because the insurance company can calculate the increased risk when issuing the policy.
A lot of thought and consideration is required before getting insurance. There are many health insurance products out there that make it easy to get confused and go the wrong way. Keep the above points in mind and make sure to check all the information before purchasing a policy.