How To Avoid Common Mistakes When Buying Health Insurance?
Updated On Sep 06, 2021
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Having a health insurance policy is an essential part of investment and financial planning as it bears long term fruits and comes with various benefits like tax deduction benefits, cashless claims, financial aid at the time of medical emergency, etc. But, choosing a suitable health insurance policy is not an easy task as it involves considering the factors that affect the choice of a health insurance policy. Such factors are age, pre-existing diseases, medical history, financial budget, etc. Sometimes customers tend to ignore some things that are vital and need to be considered while investing in a health insurance policy.
Before buying a health insurance cover, you should always analyze your requirements according to your financial budget, and then compare several plans within your budget. There are some points and areas that are usually ignored by most of the customers at the time of purchasing a health insurance policy. Not considering these important points can create confusion at the time of claim settlement, and you might not benefit completely from the purchased policy.
Key Mistakes Made By The Customers When Buying Health Insurance Plans
Following are some of the common mistakes that are made by the policyholders at the time of buying a health insurance policy. Let us also look at the ways in which these mistakes can be avoided:
1. Buying Insufficient Coverage
As discussed above, you must always analyze your requirements before choosing a suitable health insurance policy. According to your medical condition, age, financial budget, etc. you must get enough coverage. Sometimes to save some amount, customers end up buying plans with less coverage which offers little to no gains to the policyholders. You must always look for plans with comprehensive coverage at an affordable price as there are plethora of options that are available in the market.
2. Overlooking Terms of The Policy
Customers often tend to overlook the fine print of the health insurance policy which contains most of the crucial information regarding the policy. Being a policyholder you must carefully go through all the terms and conditions of the purchased health insurance policy during the granted free look period of 15 days by the insurer. You must know the basic features that are included and excluded in your plan to avoid inconvenience at the time of claim settlement process.
3. Not Considering Different Insurers
At the time of renewing the health insurance policy, customers are usually hesitant to change their health insurance providers. But, you should always explore more options as there is a possibility of getting better covers and options at the other insurers. You might find a better plan with cost-effective coverage to look after your medical expenses. There is nothing wrong in switching the insurance providers if you are not satisfied with the services of your existing health insurance provider.
4. Concealing Medical History
Many a time people lie about their medical conditions or hide their medical history from the insurer to get away with the extra costs of premium of the policy. But, this can land you in a lot of trouble as the insurer can take legal actions against you on the charges of fraud. Also, at the time of claiming your policy for the pre-existing disease, you might not get an approved claim.
5. Ignoring Co-Payment Clause
According to the co-payment clause, the policy holder has to bear a percentage of the medical expenses, that is the customers have to pay a portion of their medical expenses. The percentage of the co-payment can be 10-20% depending on the financial budget of the policyholder.
6. Considering Only Tax Benefits
You should not buy a health insurance policy solely for the tax deduction benefits. Under Section 80D of the Income Tax Act, policyholders who are also taxpayers get tax deduction benefits on their premium payments. But, buying a policy without considering the coverage will not bear you any benefits at the time of claim settlement.
You must always consider the above-mentioned mistakes and try your best to avoid them, so that you can avail maximum benefits from your health insurance policy. You must also consider your needs before investing in a health insurance cover.