The Buyt Desk
Every individual has different qualities. You may be good at understanding medical issues, while your friend may be a guru in the automobile sector. Lack of knowledge and expertise in a field; and paucity of time may make it difficult for you to venture into certain sectors of life. In the same way, you could be sure buying a health insurance for your family but in the absence of knowledge and time, may make a hurried decision. To provide the best medical care for your loved ones and to reduce your financial burden from an illness, give proper thought to purchasing a health insurance plan.
Be alert to avoid these faults while researching different health insurance plans.
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Over or under insurance: Over-insurance means that you have chosen an amount (maximum limit of the claim) greater than your requirement. You will pay a higher premium but receive a lesser benefit because your requirement itself was less. It is the opposite in the case of under-insurance. You choose an amount that is lesser than your requirement. Now you will pay the premium but due to less coverage, medical expenses during hospitalization may burn a hole in your pocket. It is a big mistake to assess the health risk profile inaccurately before deciding the sum insured of the health insurance policy. Age, genetics, occupational hazards, number of dependents, location, and inflation in medical expense are some of the determinants for sum insured.
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Ignoring additional riders in the health insurance policy: Your premium will be less if you choose a basic coverage health insurance. Nevertheless, if you do not take the required additional riders then again you will be underinsured. Taking additional coverage for critical illnesses like paralysis, heart attack, stroke, and cancer is a good option because treatment for them is extremely costly. Accident injury coverage is another rider that is equally beneficial to all. However, for a person travelling frequently for work, it is a smart move to select this add-on over the basic cover.
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Lack of thorough understanding of terms and conditions: Do you remember noticing the fine print after the asterisk that said, “Conditions apply”? You must have then enquired to the hilt about these conditions. In the same manner, understanding terms and conditions are important for selecting the right health insurance. Lacking clarity about exclusions of the policy is a blunder. Your research should be foolproof. For example, you should be aware that there is a 15-day free look period for every policy. If dissatisfied with the policy during this time, return the policy to the company and get your money back. Recently, insurance regulator IRDAI has changed the health insurance rules, for instance, the change in the definition of pre-existing illness. Be up-to-date with these rules to help you make the right decision.
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Concealing medical history: Do not be under the illusion that hiding your medical history or current health status will help you in reducing the premium amount. Remember the purpose of getting health insurance is financial assistance for availing the best medical care in the time of need. Hiding medical information has the risk of claim rejection. Disclosure of full medical information works in your favour. The company may give you a cover for the recurring illness.
Hope this list helps you in making a wiser decision while buying a health insurance.
