The Buyt Desk
In 2019, there were 250 million hypertension patients in India. Prevalent chronic diseases like diabetes, cancer, mental disorders, and respiratory illnesses are significant causes of death and disability in India. The incidence of these diseases will continue to grow for the next 25 years with a rapidly aging population. On a side note, the healthcare sector in India is expected to grow to USD 372 billion in 2022. These numbers indicate two things. First, the chances of developing a chronic disease are high. Second, the cost of treatment is rising.
Such a scenario demands you to buy a health insurance plan. Under a health insurance plan, the insurer provides you cover against accidents or diseases by paying bills for hospitalization, medicines, and doctor consultation. It comes at the cost of paying a premium annually or monthly for a fixed number of years. There is no denying the necessity of health insurance. At the same time, there is no denying that people make grave mistakes while selecting health insurance.
Opt for sufficient coverage
You may choose a health insurance plan with a low premium. While the premium amount is an essential consideration while buying insurance, sufficient coverage is also necessary. If you have to avail the sum insured, insufficient coverage would not fulfill your medical needs and leave you vulnerable to high costs.
Hiding your medical history
If you conceal your medical history from the insurer, thinking it will hamper claim settlement, you are wrong. On the other hand, the act of concealing this information will lead to claim rejection. Moreover, the insurer may offer you additional benefits after knowing your complete medical history.
Buying health insurance for tax benefits
You enjoy a tax benefit for paying a health insurance premium under Section 80D of the IT Act. Do not buy a plan only for tax benefits. You may end up purchasing a policy with insufficient coverage. The primary purpose of your health insurance plan should be to protect you and your family against medical contingencies.
Young people also need a health insurance
Medical insurance is necessary for all, including the younger population. A medical emergency can affect anyone. For instance, in the second wave of the COVID-19 pandemic, India lost many young citizens. It is beneficial to buy health insurance in younger years because it is easy to get a policy and the insurer offers lower premiums.
Missing details in the policy’s fine print
It may be overwhelming to read the fine print of the health insurance policy. Nonetheless, it is necessary. The fine print reveals details about coverage, inclusions, and exclusions of the policy. These details are crucial for claim settlement.
Buying more policies instead of extending the existing policy
To extend your health insurance policy coverage, simply “Top-up” the existing policy. Buying more policies does not offer an economic advantage.
Ignoring riders
You can avail of additional insurance amounts by adding riders such as accident insurance and critical illness insurance to your health insurance plan. Riders help to bear massive medical expenses due to severe illnesses.
Bottom line
Choose the best health insurance plan by keeping in mind the above pointers. Additionally, comparing different plans before the purchase will help you discover the plan most suited for you.
