Our family's finances now wouldn't exist without health insurance. It is becoming a crucial investment for all of us due to rising medical expenditures and an increase in lifestyle disorders. We are often so caught up that we fail to spend enough time thinking about the specifics.
Most health insurance purchases are made online, and comparing numerous online health insurance products can be really time-consuming. As a result, we either end up with an insurance inadequate for our needs or missing key components that would make it ideal for us and our family.
When purchasing health insurance coverage, one must consider some factors; in fact, the list is rather large. While going through such a list, many could err. These are the top 5 errors one commits when looking for a health insurance plan. We urge you to stay away from these.
Common Health Insurance Errors
Insufficient Coverage
One of the most frequent errors we all commit is this one. We purchase a low sum insured health insurance policy without research. Instead, we should consider future healthcare bills and the cost of treating any illnesses. Consider the ages of all family members when choosing a family floater health insurance policy, and make sure the sum insured can pay for several treatments and hospital bills should the need arise.
The bigger sum assured may require you to pay higher premiums, but it will be worth it if you ever need it. Comprehensive health insurance plans automatically increase your insured amount after each year without a claim. Shop around for such policies to acquire a greater sum assured for the same premium.
Withholding Crucial Information About Your Medical History to the Insurance Provider
Some of us may try to hide current medical concerns or past medical histories when acquiring a health plan out of concern that the proposal will be rejected or that the premiums will be higher. This is a typical error since the claim will be rejected if the insurer determines during the health insurance claim process that you knowingly misrepresented your medical history when acquiring the plan.
Insurance contracts are based on your provided information and are enforceable contracts. As a result, while acquiring a health plan, always be truthful. A poor medical history may raise your premium, but your claims will still be paid out should you file a legitimate claim that warrants coverage.
Disregarding the Importance of Waiting Period and Other Exclusions
A crucial component of health insurance policies is the waiting period. For pre-existing conditions, the majority of insurance contains a 4-year waiting period. It would also be a good idea to look around for insurance policies with shorter waiting periods so that you may receive care quickly.
Exclusions are another element. Purchasing health insurance is pointless if it doesn't cover the most prevalent diseases and their treatments. So, in case you find such a policy, move ahead and buy the one that covers you against maximum illnesses.
Completely Ignoring the Deductibles or the Co-pay Clause
The co-pay provision simply spells out the conditions while the insured files a claim. A specific amount of the healthcare costs are to be covered by the insured person, with the remaining being covered by the health insurance company. Policies can come with a 10-20% co-payment clause. So, if your healthcare costs amount to INR 4 lakh and the co-payment obligation is 20%, you will need to pay INR 80,000 before the insurer covers the remaining INR 3,20,000. However, if the sum insured is INR 3 lakh. The coverage amount will reduce to INR 2,20,000.
Everything is dependent on the kind of policy. It's important to remember that co-play clauses in insurance plans often result in cheaper premiums, so be cautious before choosing an inexpensive coverage.
There is also the deductibles clause, which states that the insurer will not cover all the costs on your final bill. Deductibles sound much like co-payment but are different. Here, the insurer will cover only after the bill exceeds the deductible threshold set by the insurer. Take an example to understand the same. Let’s keep the healthcare cost of INR 6 lakh and a deductible of INR 2 lakh. So, your insurer will cover INR 4 lakh. However, if the treatment cost falls within INR 2 lakh, liability will be yours only.
Any unpreparedness on co-payment and deductible clauses could be harmful to you. Therefore, it is wise to investigate the potential deductibles. If you don't look into these two things, you can find that you wind up footing most of the bill rather than the insurance company.
Not Looking Past Minimal Protection
Experts frequently suggest comprehensive health insurance plans above basic coverage. But despite their desire to save a few extra dollars, people don't seem to want to give up the idea of basic coverage. They are unaware of the advantages of having a critical illness and personal accident rider in addition to their standard health insurance plan. Your health is fully covered when you have this combo of insurance. Additionally, pick a coverage that provides supplemental benefits like ambulance fees, in-home hospitalisation, and cashless hospitalisation.
Conclusion
Many people still lack access to health insurance coverage and end up exhausting their savings. So, buying health insurance is elementary. However, with so many options available today, you must not make errors while purchasing the same. Knowing what to watch out for will help you choose wisely and find the best health insurance plan to protect your future and welfare.
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