Health insurance is one of the most important investments you can make in your life. It surpasses all other investments as it reduces the burden of financial expenses when your health begins to deteriorate. Despite this, according to a report, only 17% of Indians own, which is extremely worrisome. Despite this, according to a report, only 17% of Indians own health insurance, which is extremely worrisome. Even those who realize its importance, often end up makes a few mistakes when they purchase the policies. Here are 4 common health insurance errors people make and how they can be corrected.
Purchasing policies with a focus on premiums and deductibles: This is one of the biggest blunders that people commit while purchasing health insurance. Most people opt for policies with very low coverage and are disappointed when the insurer does not cover the entire coverage amount. E.g. if your policy covers only ₹100,000, and your hospitalization bill amounts to ₹200,000; have to pay the additional expenses from your pocket. Also, depending on the policy chosen, the insurer covers only about 85%-90% of the total claim amount of the sum insured. As such, you must consider your ability to cover the deductibles when you purchase your insurance policy. It is always better to spend a little extra and purchase a policy that offers higher coverage and lower deductibles.
Purchasing policies based on suggestions by well-wishers: Most people have a tendency to make investments based on tips provided by friends and colleagues. This behaviour also extends to health insurance policies where people blindly purchase policies based on suggestions. What you need to remember is that your medical condition and history may be completely different from that of the people offering suggestions. A plan that works for your well-wisher may not fulfil your insurance needs. It is therefore important to research various policies and choose one that best suits your medical needs. You must compare several different policies before finalizing one which suits your requirements.
Hiding pre-existing illnesses while purchasing the policy: Some buyers provide false information about their health while filling the insurance form. They do not disclose pre-existing illnesses to save on paying high premiums. They also believe that hiding their pre-existing illness can strengthen their application for medical insurance. But you must remember that insurance providers check your medical details before approving your proposal and if they find that you have falsified any information, your application can be rejected outright. It is therefore important to disclose your medical history while filling the insurance form.
Buying insurance just to avail tax benefits: While the ability to avail tax benefits is definitely advantageous, that should not be your sole motive for purchasing medical insurance. Focusing solely on the tax benefits and purchasing a policy that provides insufficient coverage can put your finances in jeopardy, should a serious medical condition arise. You need to focus on your health requirements and the need to protect your finances against medical emergencies while selecting a policy as opposed to just saving taxes.
