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Common Mistakes To Avoid When Buying a Health Insurance

Published On Jan 29, 2021, Updated On Apr 26, 2021

Having a health insurance is very crucial. But there are several things to keep in mind before you buy or invest in one. The following is a list of 5 common mistakes that you need to avoid when buying a health insurance policy -

Common Mistakes To Avoid When Buying a Health Insurance

  • Not Settling For Adequate Coverage -

This is a fairly common and frequent mistake that everyone does while buying a health insurance policy. The basic requirement of a health insurance is to get adequate financial coverage for unforseen or accidental medical expenses and so it is important for you to settle for an insurance policy that comes with a significant amount of coverage. But many people overlook this aspect while investing in a health policy and tend to buy a policy with a low cover to minimise their amount of premium payment. Medical expenses are skyrocketing with each passing day and so you must settle for an insurance policy that offers a handsome coverage.

  • Buying Insurance Just To Save Tax -

While it is true that investing in health insurance comes with its own share of benefits, buying one simply to save tax is not the right approach. The main idea of investing in health insurance is to secure financial protection for you and your family. Tax benefits should be a concern, but it should not be your decisive factor when you are looking forward to buying health insurance.

  • Keeping Your Medical History Undisclosed -

Disclosing your medical history is a part of the buying process of a health insurance policy. Individuals often shy away from mentioning their pre-existing medical conditions in anticipation of paying a higher premium. In doing so, they miss out on a relevant clause of most health insurance policies where their medical cover is liable to be rejected by the insurance company for non-disclosure of information. Hence, it is important for you to be honest while listing your medical history if you want the insurance company to offer full coverage for future diagnosis and treatment costs. A higher premium might be a pinch in your pocket but it will ensure that the medical intervention and attention that you receive is not compromised by any means.

  • Buying An Insurance Without Comparing -

Buying insurance without comparing it with other policies is a big no. If you want to settle for a big coverage amount at a lower rate of premium, you must compare the policy you are interested in with other plans available in the market. Often low premium paying insurances have restrictions and you might not get all the coverage benefits that you can avail from another plan which comes with a slightly higher rate of premium. Therefore, it is necessary to compare the premium amount, coverage and benefits of different health insurance policies to choose a plan with the best premium rate and services to suit your budget.

  • Not Taking Deductibles Into Consideration -

Some people are of the idea that in cases of hospitalization or urgent medical intervention, the entire cost of the treatment is covered by their health insurance companies. But, with regard to certain limitations, health insurance companies are not bound to reimburse the entire cost of the treatment and part of the payment might have to be borne by you. This payment is referred to as a ‘deductible’ and different companies have different rates for the same. Deductibles often impact the total coverage amount promised to you and so, you must be aware of this clause before you buy a health policy. An insurance company can write off its deductible amount, only if the medical cost incurred by you is greater than the total insurance coverage.

These are the 5 common mistakes that you need to avoid while buying a health insurance policy. Being informed about these aspects will help to invest in a health policy that is suited to budget and offers the maximum financial support to you and your loved ones in times of medical emergency. Selecting the perfect insurance amidst a plethora of options can get a little daunting, but hopefully, these tips will help you to make a wise decision.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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