Imagine you are 30 years old, living in Pune, and you just got your first job. You decide to buy health insurance to take care of unexpected medical expenses.
But did you know that around 80% of people in India are not covered under any health insurance policy?
This is because they make some common mistakes. Let’s talk about these mistakes and how to avoid them so you don’t make the same errors.
1. Rushing the Purchase
Many people rush into buying health insurance without researching properly. According to Care Insurance, they fail to compare plans and premiums, leading to poor choices. Always take time to understand policies first.
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Imagine you buy a health insurance policy with a ₹ 2,00,000 coverage, but later you find out it doesn’t cover cancer treatment. A cancer treatment could cost you ₹ 5,00,000, leaving you with a huge bill.
- Choosing Too Little Coverage
Many believe lower-coverage health insurance saves money, but it doesn’t.
In India, hospital stays cost ₹40,000-₹50,000 on average. Niva Bupa’s study shows many choose lower coverage to save on premiums, but it can lead to unexpected expenses.
For instance, if you opt for ₹ 2,00,000 coverage but your bill reaches ₹ 4,00,000, you’ll pay the difference. It’s wiser to select a policy with higher coverage, even if premiums are higher.
3. Hiding Medical History
Some people try to hide their medical conditions from insurance companies, thinking it will lower their premiums. But this is a big mistake!
Acko Insurance warns that hiding health issues can lead to claim rejection. Insurance companies require full disclosure to be fair; failing to do so may result in denied claims and high costs.
4. Not Reading the Fine Print (Exclusions)
Health insurance policies have exclusions, such as not covering pre-existing conditions for the first 2-4 years. Always check. Policybazaar says many ignore exclusions. It’s crucial to read the policy and understand what’s not covered.
For instance, if you have diabetes and the policy excludes treatment for it, you’ll have to pay for it yourself. Always check the fine print before buying.
5. Not Checking Network Hospitals
Health insurance companies maintain a list of hospitals offering cashless treatment. If your preferred hospital isn’t on the list, you’ll need to pay upfront and wait for reimbursement from the insurer.
Muthoot Finance highlights the importance of checking if your hospital is included in the insurance network.
Imagine, during an emergency, you don’t want to waste time figuring out where to go. Make sure the policy covers your nearest or preferred hospitals.
6. Choosing Based Only on Premium Cost
It’s tempting to choose the cheapest policy, but this could be risky. A lower premium may mean higher deductibles, co-payments, or limited coverage.
For example, a cheaper policy may not cover surgeries or expensive treatments. So, always look at the overall benefits of a policy, not just the cost of the premium.
7. Missing Additional Benefits
Many health insurance policies offer extra benefits like maternity coverage and critical illness, but people often overlook them.
Acko recommends choosing policies with extra benefits for better healthcare.
Table: Common Health Insurance Mistakes & Their Consequences
| Mistake | Consequence |
| Rushing the purchase | This can lead to choosing the wrong policy. |
| Choosing too little coverage | You might face high medical bills. |
| Hiding medical history | Claims can be rejected. |
| Not reading exclusions | Uncovered treatments can lead to out-of-pocket costs. |
| Not checking network hospitals | You might not be able to use your preferred hospital. |
| Focusing only on premium costs | Hidden costs like higher deductibles can lead to expensive bills. |
| Ignoring waiting periods | Treatment may not be covered immediately. |
| Missing additional benefits | You lose out on extra protection and benefits. |
Conclusion
Choosing the right health insurance is crucial. If you buy low coverage and ignore the waiting period, unexpected surgeries might not be covered. Take your time, research policies, and read the fine print to avoid surprises and unnecessary costs.
Consider a personal loan in Pune to cover health insurance premiums and medical expenses, ensuring better coverage for your family.
Avoid mistakes to ensure your health insurance protects you effectively.
