11 Common Myths About Health Insurance Busted
Published On Mar 17, 2019, Updated On Dec 04, 2020
I don’t need health insurance because I am young and healthy.
Also, my family and I are covered by my employer.
I can get health insurance for tax benefits.
Different people have different opinions about health insurance policies.
Unless you meet a person who has got covered under a health plan and told you the facts about the plan, chances are you’ll believe one or more of the below myths.
Let’s discuss the 11 most common health insurance myths that float around.
Myth #1: I am young and healthy, I don’t need health insurance
This is one of the most common myths about health insurance. The premium paid against health insurance at an early age is affordable.
This is because, as you age, you are nearer to ailments, so the premium increases. Also, the higher the risk of having diseases, the more the premium amount. In addition, if you are young and healthy, you can wait for the waiting period. This lets you avail of complete health cover sooner.
So, buying health insurance at an early age is a wise decision.
Myth #2: Pre-existing diseases are covered from Day 1
The truth is quite the opposite. In general, every health policy comes with a 30-day waiting period, barring cases of accidents. Usually, 2-4 years of the waiting period is required for pre-existing diseases.
It’s, therefore, important to compare different health insurance online. And choose one that is most suitable. Also, understand inclusions and exclusions, policy tenure, the sum assured, etc. It is advisable to read the policy wording to decide whether or not the policy is suitable for you.
Myth #3: I have a corporate plan for me and my family.
No doubt, organizations provide their employees with corporate health insurance. But, it doesn’t mean you should underestimate the importance of a personal health cover. If truth to be told, your corporate policy is valid only till you are the employee of the organization. Once you quit the job, you will no longer be covered under the policy.
In contrast, if you have a personal health insurance policy, you will not depend on the employer’s health policy.
Myth #4: If you break the insurance contract, you will lose the benefits
It’s true that a policyholder should review his/her policy on time. But, if the due date expires and he or she fails to renew the policy, the insurance company provides them with around 30 days of grace period for the policy renewal. Though you can’t avail claim benefits during this period, you won’t lose other crucial aspects like the waiting period.
Myth #5: I don’t need to declare all my pre-existing diseases.
This is absolutely wrong. Be honest in disclosing all your pre-existing ailments. If you disclose them, chances are they will be covered after the waiting period. In contrast, if you conceal your health conditions, the underwriting team of the insurer will probably gauge your medical history at the time of a claim, thereby rejecting your claim request.
Myth #6: 24-hour hospitalisation is required for the claim.
Earlier, it was true. But, now the advancement of medical sciences has changed many things. Today, over 100 types of treatments are done within a few hours. And the doctor discharges the patient the same day. Such treatments are called daycare treatments, which include cataract surgery, lithography, dialysis, chemotherapy and so on.
That’s why almost every insurance company in India is allowing claims for treatments that require less than 24-hour hospitalisation.
Myth #7: I smoke, so I won't get a health cover.
Many people who smoke and consume alcohol think that health insurance is not for them. The good news is that they are eligible for the health policy. Although they are more prone to health hazards, insurance companies extend health plans for them.
Since the risk associated with them his higher than a non-smoker, they need to pay a higher premium and undergo a stringent pre-health check-up before getting an insurance policy.
Myth #8: Having a number of network hospitals is good.
No doubt, network hospitals are good. But, you should know that health insurance companies often focus on their widespread network to attract customers. Remember that the list of network hospitals is likely to change each year. It can, thus, lead to the elimination of your preferred hospital from the list any year. So, don’t choose a policy based on network hospitals.
Myth #9: A policy with more daycare procedures is always good.
This is another misconception. Like network hospitals, the daycare procedures are also given significant weightage when you choose health insurance. If the insurer is offering an exhaustive list of daycare procedures to cover, it’s probable that there is an equally exhaustive list of terms and conditions to get claims for those daycare treatments.
Myth #10: No health insurance provides maternity coverage
This was true a few years ago. But, the trend has changed now. These days, insurance companies add maternity coverage to certain health plans. However, there are some conditions that govern the cover provided for pregnancies. These conditions may be:
- Coverage available for 1st pregnancy.
- Coverage for a maximum of two deliveries.
- Cover for both normal and Caesarean deliveries.
- A waiting period of a certain number of years to cover pregnancy.
When you hunt for a policy, make sure it gives you maternity benefits or not. Also, please refer to the policy wording to understand the terms and conditions.
Myth #11: Health insurance pays the entire hospital bill
This sounds true. But, the actuality is otherwise. Insurance companies pay only partial claims. This is because they don’t provide coverage for consumables, such as a thermometer, oxygen mask, nylon gloves, face mask, crepe bandage, etc.
Some insurers set certain predefined sub-limits. For instance, a few health plans carry a cap on room rent, while others pay the actual room rent without any cap.
Let’s understand this more clearly.
Assume that your policy has a room rent cap of 5,000 a day. You take a room of Rs. 6,000. In this case, you will have to pay 1,000 from your pocket. Remaining 5,000 will be paid by your insurance company.
Likewise, some health insurance plans come with a limit on hospital expenses. They can exclude certain medicines from the claim list. So, know the non-admissible list of expenses right from the beginning.
I hope, you’re aware of all common myths now. Don’t believe such misinformation in the future.
Also, take note that whenever it comes to purchasing online health insurance, refer to the policy wording carefully provided by the insurance company. The cost of medical treatment is soaring sky-high, and a health insurance plan works as an arm to guard you and your family against any medical emergency.
What are you waiting for? Search for health policies online and choose one that is suitable for you and your family.