Common Mistakes To Avoid When Buying Health Insurance

By | March 10, 2017

Common Mistakes To Avoid When Buying Health Insurance

Health problems often arrive unannounced, which is why you need to be financially prepared to meet the expenses that come with it. If you haven’t already bought a health cover for yourself and your family yet, you must consider getting one at the earliest.

However, before you head out to purchase Medical Insurance, watch out for these commonly-made mistakes. You don’t want to land up with the wrong cover.

1: Relying on your employer’s group cover

If you are completely dependent on your employer’s group policy, you are walking on thin ice. Your employer’s policy is valid only through your employment period. Without your own cover, you are left with no protection during your transition to another job.

Also, some employers only cover either your parents or your spouse, not both. This is why you need to consider getting an independent family floater plan to ensure you and your family are well protected.

2: Comparing premiums instead of plans

A low premium insurance plan is not necessarily the best one. Ideally, you should be comparing plans on the basis of what they offer rather than the amount of premium you have to pay.

Low premium plans usually offer limited coverage. Before you pick a cover, you must assess your healthcare needs and go through the inclusions and exclusions of the plan along with the coverage for pre-existing diseases. You must ensure you get substantial coverage irrespective of your age or risk appetite.

3: Overlooking co-pay clause

Health Insurance seekers often miss out on the co-pay clause associated with these plans. A co-pay clause gives you the option of sharing the treatment cost with your insurance provider.

If you are looking for a low premium, this is a good way to reduce your annual premium without compromising on the coverage. However, a lower co-pay is advisable so that you’re not burdened with hospitalisation bills.

4: Concealing pre-existing diseases

Not disclosing pre-existing diseases to an insurer could lead to the rejection of your insurance claim. Usually there is a minimum waiting period associated with pre-existing diseases, after which the cover is available.

5: Not checking terms and conditions carefully

The terms and conditions are unique for each insurance product, and going through these details is important to understand the sum assured, premiums, diseases covered, waiting periods, the network of empanelled hospitals etc.

Assuming the terms and conditions to be the same for all products is a common mistake, which must be avoided at all cost.

Additional Reading: 5 Questions You Need To Ask On Term Plans

Don’t be in a hurry to sign on the dotted line when you buy an insurance product. Always insist on taking the time to read the fine print. After all, you certainly don’t want any unpleasant surprises when you need your insurance policy to come to your rescue.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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