“Health Is Wealth!”
We have heard this saying since our childhood. And truly, it gives more significant meaning to our lives, as health is considered as the most valuable asset for any individual. It not only refers to a disease-free body but a complete physical, mental, as well as social well-being of an individual. Staying healthy, therefore, becomes a necessity!
Similarly, in the mid of rising healthcare cost, health insurance has become the backbone of a healthy life. As medical emergencies usually come unannounced, therefore, the need to buy health insurance is equally important as staying fit.
However, before buying any long or short term health insurance plan, one needs to understand its different aspects, and this is where most of us make mistakes. Fortunately, a little homework can certainly help you buy the best plan.
Read on to know the five common mistakes that you should absolutely avoid while choosing health insurance:
1. Focussing Only on Premium Amount
It’s a normal tendency amongst individuals to concentrate on the premium they need to pay as opposed to the coverage they will get when the need arises. Yes, it helps you spare a little amount first, but it certainly leaves you with insufficient coverage later.
While buying health insurance, you must look beyond premiums as there are a great many things to consider, like your medical needs, limitations and exclusions of the plan, the insurer’s track record in settling claims and so on.
Remember that cheap is not always the best. Such plans probably won’t cover all your requirements and will not serve your purpose. We are not saying that you overlook the premium amount, but ensure that it is in conjunction with your needs. Note that, it’s all about getting adequate coverage. Therefore, before settling for any health plan, assess your needs and finalize a plan that matches the same.
2. Hiding Your Medical History
A few people tend to lie about or conceal their existing/previous medical ailments in the policy application form fearing that either:
- The premiums would be higher or
- The proposal would be rejected
However, this is the biggest mistake one can make. As any non-disclosure of medical conditions is considered incorrect by insurance companies and can lead to claim rejection at the time of need.
Instead, one should always be honest when buying health insurance. Although, a medical history might raise your premiums, but your claims would be honoured at a time when you need it the most.
3. Ignoring the Fine print
Another slip-up people make is not contacting their insurer’s customer service team when they have questions with respect to their coverage. Neglecting to make inquiries about things you don’t understand will just cost you more over the long run.
Generally, the fine print carries vital information about the waiting period, pre- and post-hospitalization expenses, and limit on room rent besides other exclusions. If you fail to read these, you could be in for an unwanted shock at the time of claim settlement.
4. Not Adding Riders
A comprehensive health insurance plan is always better than basic coverage. However, people are usually reluctant to give up the idea of basic coverage since they are keen on saving the few extra pennies.
They fail to understand the advantages of having a critical illness rider or personal accident protect rider when they buy health insurance. Such riders play a pivotal role in making your health insurance more comprehensive as they provide you with extra insurance amount if you suffer from a critical illness or meet with an accident.
5. Not Shopping Around
Currently, there is a wide array of health plans available in the market, each differing in terms of coverage and benefits. So, how would you know which plan is best for you?
The answer is simple – by comparing health insurance plans before you buy them!
Comparison is absolutely essentials as each one of us has different financial background and needs. Buying a plan simply because your relative or friend has bought it is a severe mistake. You must always buy health insurance after evaluating your future needs and comparing different health plans with each other.
Making mistakes due to lack of insurance knowledge is common. But, now that you have this guide which addresses the most common mistakes, be watchful and pick the right health coverage for yourself.
These days, you can easily research, compare, and buy health insurance online. Therefore, make the most of this advantage and select a plan that provides you with the best coverage benefits and pays the claims when the time comes.