6 Mistakes People Make While Buying Health Insurance Policies

If there’s anything you shouldn’t purchase in a big hurry, it’s health insurance. Or any other sort of insurance for that matter. Oddly, though, we spend much thought, time, and effort buying basic necessities such as groceries. But the same effort often doesn’t go into making important decisions such as purchasing insurance policies. Shouldn’t we make this a priority too? ‘Mistakes While Buying Health Insurance is now a common problem and nobody thinks about it.

We have a laissez-faire attitude to health insurance, and we can take things as they come.

The current Covid-19 pandemic has exposed the big gaps in our thinking and made us aware that we must pay more attention to ensuring that our loved ones and we don’t face a financial crisis along with a medical one.

There are certain unfortunate mistakes that we could make while getting health insurance:

1. Not making an informed decision: Purchasing an insurance product without fully understanding the terms and conditions, exclusions, clauses, and benefits can be a huge mistake. As a result, you are stuck with a policy of little use to you or the beneficiaries.

  1. Spend time and effort on reading the policy.
  2. If there’s anything you don’t understand, check with knowledgeable people.
  3. Compare and contrast different products offered by different companies so that you get the best deal.

It is not wrong to think about buying health insurance, but you need to know a lot of stuff about health policy, especially, how an insurance policy works and how the policy would be helpful for you. There is a saying, ‘Knowing little & showing much’, a person does not show interest in anything that he does not know much because in such cases the chance of making mistakes is high, and often incomplete knowledge prevents us from reaching the right thing.

2. Insufficient Coverage: People purchase policies that offer inadequate coverage to save on premiums. If you haven’t looked beyond basic coverage and haven’t added important riders to your policy, it’s almost as good as no insurance at all. If you’re under-insured, you could find yourself out on a limb when a medical crisis strikes.

The coverage that comes with a health policy is not enough to cover you, a person tries to plan his life but one thing is that life does not always go according to our plan and we never count the uncertainties of our life. And that is why we are telling you that the coverage you get with health insurance is nothing, the more coverage you get with the health policy, the less it is to cover you completely. You can add many different services as a rider benefit with your health plan. These ‘Mistakes While Buying Health Insurance’ can make things difficult for you.

Instead: Get the maximum coverage and customize your policy with riders, even if it means some extra premium payment.

3. Hiding important medical facts/history: When you have been deliberately cagey about your medical history or lifestyle/habits (such as smoking), it could have serious repercussions at the time of claim.

It is said that do not hide anything from the doctor, the law, and the insurance company because it is our loss, before buying insurance, a person has to go through many tests, and because a medical checkup is the most important part of this test. If so, without your health report no insurance company will come forward to ensure you. If in some way you have managed to hide that you have a disease, but when you clam for it and the clam is also rejected, then it will become very difficult for you.

Instead: Share all facts and details, even if the premium becomes higher as a result. This ensures transparency and fewer chances of claim rejection.

4. Opting for different insurers: As creatures of habit, we’re reluctant to opt for a different plan or insurance company. We miss out on newer, innovative, and more beneficial or economical products.

Instead: While renewing your policies, compare them across different service providers and get better plans and rates more aligned to your changing situation.

5. Ignoring Exclusions: Health insurance policies have a comprehensive list of exclusions that that plan or policy will not cover. These vary from company to company. Since this list is provided when signing the contract, the insurer will not entertain claims under the excluded category.

Usually, one wants to know and know about the benefits and coverage when buying insurance, but if you want to understand the insurance properly, then you should look at the features not available with the plan. By doing this, you will get a better view of the plan and secondly, you will know up to the limits of your insurance. Many times it happens that many such services are removed from the plan, which is very important to have. You can customize your health policy, and also add coverage to the policy as per your requirement. Ignoring exclusion is a basic “Mistakes While Buying Health Insurance” and it’s really worst.

Instead: Read the list of exclusions very carefully. Every document should be read carefully and if there’s anything you don’t understand or have a doubt about, clarify it immediately with those in authority. You should also be aware of the network of hospitals linked to your insurance plans so that you don’t face a claim rejection. This should also be the case with any insurance policy.

6. Lack of research: Before buying any policy or before starting any work, we should know that thing completely so that if there is any problem then it can be handled. If you are thinking of buying a health policy then it is a good thing, but buying a policy in this digital world, do a little research with the help of the internet so that things become easy for you. Doing research before starting any work is considered homework. If you want, you can also compare the policy from the different insurance companies and choose the plan according to your need.

Related posts: