6 Things You Didn't Check Before Buying Health Insurance

TomorrowMakers ™

6 Things You Didn't Check Before Buying Health Insurance

30 December 2016
From concealing medical history to ignoring the fine print of a policy, here are 6 common mistakes to avoid while buying health insurance.
 
 

A major illness in the family can throw the entire household budget out of gear. Even then, buying medical insurance is seen by many as a tax-saving device than a necessity. Less than one in five Indians possess health insurance. If you don’t have health insurance, it’s time to get one. To help you find the right plan, here are six mistakes to avoid:

  1. Starting late in life –Being young is no excuse to not have health insurance because illness can strike anyone, anytime. Starting early has advantages too. You are less likely to have pre-existing diseases, making it easier to get cheaper cover and accrue no-claim bonuses. Waiting for too long may mean insurance cover being denied or a waiting period for pre-existing illnesses, usually four years.

Related: How Pre Existing Medical Conditions Affect Your Health Insurance

  1. Depending on employer provided insurance alone –This perk is always welcome, but may provide insufficient coverage or be tailored to your unique requirement. Plus, you are left unprotected when you are in between jobs. Make sure to buy your own policy to supplement your employer’s cover- a family floater policy is a good option that covers all family members with one plan. Tip: prioritise the employer’s policy for claims, thereby allowing you to accrue a no-claim bonus on your own policy.

Related: Group Health Insurance Vs Individual Health Insurance

  1. Using cheaper premium as the main yardstick - A low premium policy might have several exclusions that would make the support offered insufficient.

When you buy a policy, make sure that specific diseases or conditions you or your family members are prone to contract based on family history, are covered.

To this end, you may need a critical illness rider with your life insurance policy or a standalone Critical Illness Plan. In case of a life threatening disease or condition, this will cover non-hospitalisation expenses that a normal indemnity policy such as health insurance does not cover.

Related: Is your Health Insurance plan adequate to cover critical illnesses?

  1. Not reading the fine print – It is critical to read the fine print carefully so that you’re not in for disappointments. Check which hospitals in your neighbourhood are on the list of cashless hospitalization facilities as per your insurer. Insurance companies could limit the hospital room cost/rent covered by them to 1 per cent of the sum insured. So, if the sum assured is Rs. 2 lakhs, they will pay only Rs. 2,000 per day towards room charges. You will end up paying the rest. Thus, look out for clauses like the co-payment clause, where you have to share the cost with the insurer.

 

  1. Not reviewing the policy – At least once in five years, review your cover and compare it to existing expense levels for various treatments. If required, buy additional cover. If your premiums increase or any new clauses are introduced at the time of renewal, ask why that has happened. Keep track of new products. For instance, a top-up cover is a relatively new product. If you find your policy restrictive, you could switch providers after comparing features and costs.

Related: Medical treatment in India - Can you really afford it? [Infographic]

With a little due diligence, health insurance can be a life saver in dire circumstances. All you need to do is ensure you’ve chosen your plan carefully.

 

Quotes of The Day

POLL

 

MOST VIEWED CONTENT

Eight health insurance myths debunked

Eight health insurance myths debunked

There are certain myths around health insurance which might deter one from taking an informed decision. Here are some common myths busted

Health Insurance cover you must get at different stages of life

Health Insurance cover you must get at different stages of life

With age, your needs increase for this its important to pick the right cover for your life stage. Reviewing your plan at different stages can ensure you get 360° protection.

Health check ups at different stages of life [infographic]

Health check ups at different stages of life [infographic]

Sickness can strike anytime, but with regular health check ups, you can ensure that you plan for it, rather than being caught off guard.

Here's why every woman should get health insurance

Here's why every woman should get health insurance

: Health insurance for women can ensure protection for not only themselves, but also their loved ones. And it can provide a more secure financial future.

Terminal illness benefit

Terminal illness benefit

A terminal illness is a rapidly advancing and incurable medical condition. When diagnosed with a terminal illness, there is no option but to resort to palliative care because the victim has a lowered life expectancy.

Why you need to supplement 'indemnity' health covers with 'defined-benefit' health insurance plans

Why you need to supplement 'indemnity' health covers with 'defined-benefit' health insurance plans

For complete protection from rising medical costs, one needs both indemnity as well as defined-benefit type of health plans. Here's why.

8 health insurance jargons explained

8 health insurance jargons explained

At times, terms and conditions in a health insurance policy can be confusing. Not just an understanding of the term even the conditions attached with it need to be known for a better, evolved and an informed buying decision.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER