Mistakes to avoid while buying a health insurance policy 28th August 2019
Given the rising healthcare cost, a sudden medical emergency can put a significantly hole in your pocket. A health insurance policy, therefore, is an absolute must to get timely and expert medical help for yourself and your family. Plus, the added tax benefits help you save money.
Despite its popularity, there are certain common mistakes that people still make while taking health insurance. We list a few of those.
Depending solely on employer’s cover
Health insurance is a valuable form of compensation for companies, which is why a lot of organizations offer it to their employees. While it is convenient, it may not be enough to cover your entire family’s needs. Plus, the risk of losing insurance in case of quitting or termination is another reason why should also consider an independent medical cover.
Lowering premium by underinsuring yourself
While it’s prudent to look for practical ways to lower premium, it shouldn’t come at the cost of impacting the coverage. Decide on the right amount as insufficient coverage may force you to shell out more money in case of a medical procedure that’s not covered under your insurance policy.
Getting influenced by other’s policy choices
Different insurance providers offer different coverage, benefits, and premium amounts. While a certain plan may work well for your friends and relatives, your lifestyle, as well as your requirements, could differ from theirs. It’s, therefore, best to compare the various plans available and choose one suiting your needs.
Ignoring sub-limits
Most people don’t give sub-limits enough thought, but overlooking this could blow up your medical cost later despite having insurance. For instance, you may not be aware of the room tariff sub-limit under inpatient hospitalization coverage and may be presented with a much higher-than-anticipated bill.
Not considering the riders you can take on your plan
Opting for different riders hikes up the security coverage of your existing health insurance plan. Plus, it comes at a comparatively lower cost. Be mindful of all the riders that you can add on to the plan before signing the dotted line.
It may be tedious and boring to scan the entire insurance policy document carefully, but it's strongly recommended to read through all the details. Right from the exclusions to the terms and conditions, you should be aware of all the relevant aspects of your policy.
Not revealing correct information (Tell the Truth, always!)
Your policy premium amount heavily depends upon certain factors, such as your medical history and lifestyle choices. Smoking, for instance, can drastically affect the premium amount. Some people shy away from disclosing such information to lower the premium. Not only is it unethical, but it can also severely jeopardize your chances of claim approval. Always be honest and upfront about all the information requested for in the policy document.
Insurance is a subject matter of smart choice hence choose wisely!