Health insurance is one of the most important financial products you will ever purchase. It will safeguard your hard-earned money in the event of an unexpected illness. While it is important to buy health insurance, it is also imperative that you choose between health insurance plans wisely. To help you out, here are 5 common mistakes to avoid when you buy health insurance.
- Forgetting to discuss sub-limits
Many health insurance plans place sub-limits on certain claims. For instance, if the sub-limit on your room is 5% of a Rs. 3 lakh health policy, then you can claim a maximum of Rs. 15,000 as room rent. Anything in excess of that will come from your own pocket. Bear this in mind when buying health insurance. Try to look for a plan that will have higher margins for expenses.
- Skipping the riders
When you sign up for health insurance, you might feel tempted to skip the riders in an effort to lower premium costs. However, this can prove to be a mistake. These riders provide additional coverage that can come in handy should a medical emergency strike. One of the most important riders to consider is critical insurance. Do add this rider in case you don’t already have a specific critical insurance plan.
- Hiding medical facts
When signing up for health insurance, make sure to truthfully tell the insurance company the details of any pre-existing diseases. If you hide this information, you could see your claim getting rejected. Remember that the insurance provider conducts their own checks into your medical records when processing a claim. So, it is best to be upfront and honest.
- Not covering the whole family
Many people incorrectly assume that health insurance is required only by the elderly. The fact is that illness can strike at any age. Even children, teenagers, and people in their 20s or 30s may need sudden hospitalisation. For instance, a teenager might suddenly fall ill with dengue and require medical treatment that can see the bills soar high. So, when purchasing health insurance, make sure to cover your whole family, irrespective of their ages.
- Focusing only on premium price
The cost of the premium should never be the sole factor of consideration when choosing between health insurance plans. Instead do compare the exclusions, terms and conditions, and waiting period to see which health insurance provider really offers you the best product. You can also consider reading up customer reviews on the insurance provider. Finally, remember to check the ratio of claims settled. A higher ratio is always preferable.
Health insurance is the life raft that will help you survive the stormy seas of sudden illness. So, taking this insurance must be a well-thought out decision. Do remember to read the terms and conditions of the policy before you end up purchasing. Spend some time comparing health insurance plans and make the right choice for you and your loved ones. Take care.