What Are Some of The Top Myths About Health Insurance?
Updated On Apr 26, 2021
Health insurance is one of the most important requirements in an individual’s life. It is a necessary protection against sudden medical exigencies and hospital bills that might lead to the complete exhaustion of one’s existing investments. Therefore, it is imperative to start investing in health insurance before one starts investing in long-term goals.
Yet, health insurance is commonly misunderstood as a product and there are certain myths regarding it that result from a lack of information and understanding about insurance in general.
Top 5 Life Insurance Myths
The following are a list of some of the top myths prevailing over health insurance -
Myth 1 - I don’t need health insurance because I’m young and healthy
Fact - Contrary to this notion, the best time to invest in health insurance is when you are in the pink of your health and fit. Several illnesses and health disorders remain asymptomatic without diagnosis and these conditions are sometimes covered by health insurance only after 48 months of holding a policy. Further, your health is not governed by illnesses alone, accidents can occur at any time and any age. Therefore, having a health cover is convenient that ensures financial support for such situations and high treatment costs.
Myth 2 - A cheap policy is the best policy
Fact - This is not the right approach when a person is looking forward to investing in health insurance. While many would like to buy a health cover that has a lower premium rate and high coverage, such plans are not inclusive. Nowadays, all health insurance policies offer a basic coverage of hospitalization charges but some include some added benefits as well such as enhanced life cover or a joint life cover. You must be aware of the restrictions in low premium policies and look for a cost-effective plan that gives you comprehensive coverage.
Myth 3 - Smokers cannot buy health insurance
Fact -Quite opposite to such understanding, smokers or tobacco users can also buy health insurance. Although health insurers do incentivize a healthy lifestyle by offering non-smokers discounts and a lower rate of premium, in reality, they are only interested in the pre-existing health conditions of a prospective policyholder. For example, if you have suffered from a major heart ailment in the past, it must be disclosed to the health insurance company as a pre-existing medical condition. The company might charge you a higher rate of premium, but they cannot deny you a health cover.
Myth 4 - In case of hospitalization, all expenses are covered by health insurance
Fact - It is one of the most common misconceptions about health insurance. Health insurances come with exclusions and it is not contingent on the insurance company to pay for all medical expenses or hospitalization charges incurred by a policyholder. The health cover pays only a proportion of your hospital bills, and the rest of the payments are payable by you. It is extremely important that you read the guidelines of the policy to understand the terms and conditions in accordance with the costs of treatment.
Myth 5-Health insurance benefits are payable from the first day of policy
Fact - A commonly misunderstood claim amongst policyholders is that the benefits entitled to them under different health covers are available for them as soon as the policy begins its terms. In reality, most health insurances come with a ‘waiting period’ of 30 days from the date of commencement of the policy. During this period, no illness-specific payments will be made to you and the coverage begins only after the end of the said period. You can get the benefits of health coverage only if you are hospitalized on accord of an accident or any other unforeseen incident
In conclusion, it can be said that these are the top 5 myths that people have about health insurance. In addition to this list, there are many other misconceptions that people harbor towards this financial product. Therefore, it is always necessary to read the policy documents carefully before investing. It will aid you to be aware of misinformation and allow you to select the best health cover for you and your family.
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.