Common Pitfalls You Must Avoid While Purchasing Health Insurance?

Health insurance plans are purchased with the hope of medical protection in times of need. However, sometimes it ends up being a source of surprise and disappointment. This mostly happens when people rush to buy health insurance plans, often overlooking essential aspects. Ignoring waiting period clauses, misunderstanding exclusions, and being unaware of sub-limits can lead to unwanted problems in the future.

This guide is all about common mistakes that people may commit during purchasing health insurance plans. Read on to make informed decisions when purchasing a health insurance policy. 
 

Common Errors to Avoid Before You Sign That Policy

Here we have discussed the top 10 health insurance buying errors that people usually commit:

1.Hiding Pre-existing Diseases

At the time of purchasing a health insurance policy, it is essential to disclose your health history and inform your insurer about any pre-existing diseases. Failing to do or hiding medical conditions can have consequences. The policy may be terminated, and you may not receive medical coverage when needed. 

Therefore, do not hide any information about your health to ensure you have the right health insurance policy. 
 

2.Overlooking Policy Documents

Before signing the policy document, it is crucial to review the fine print carefully. Since these documents are often uninteresting, many people tend to overlook them. However, it may lead to a poor understanding of your policy, which may impact your claim benefits. 

Take a moment to review the :documents carefully. If you do not understand anything, your insurer is there to help you out! 
 

3.High Copay for Low Premium

When you choose high copays and deductibles, the premiums are low, and vice versa. Sometimes, people run behind low premiums. However, in times of need, high copays can have a significant impact on your finances in unexpected ways.

 Make sure to choose a copay wisely and avoid rushing into a plan with the lowest premium only. 
 

4.Insufficient Sum Insured

The purpose of a health insurance policy is to get sufficient medical coverage in times of need. Therefore, it is crucial to select a suitable sum insured, whether you opt for individual or family health insurance plans. 

Assess your needs and health history to understand the sum insured amount that you may need. Additionally, you may purchase top-up plans to ensure a sufficient amount. 
 

5.Not Understanding Exclusions

No health insurance plan can cover everything. There are certain conditions known as exclusions. These are the conditions that fall outside the scope of a health insurance plan. Understanding exclusions is vital for the policyholder. It helps you refrain from making wrong claims.

 Read the fine print to understand exclusions in detail. It usually has conditions like waiting period, suicide, self-inflicted harm, war, alcoholism, intoxication, and so on. 
 

6.Ignoring Sub-limits

Typically, health insurance plans have certain segments with sub-limits. This means you can utilise your sum insured up to a certain limit for specific conditions. For instance, the hospital room rent may have a 10% sum insured sub-limit. Here, if your sum insured is ₹10,000,00, you can utilise only up to ₹1 lakh for room rent during hospitalisation. 

Ask your insurance provider for details of sub-limits so you can plan hospital expenses accordingly. 
 

7.Unaware of Network Hospitals

Network hospitals help you avail of cashless hospitalisation benefits. If you are willing to utilise cashless services, it is essential to seek treatment at one of the network hospitals. While the new announcement of Cashless Everywhere allows cashless treatment even in non-network hospitals, the facility may not be available at every hospital. In such a case, you may have to raise reimbursement claims. 
 

8.Misunderstanding Waiting Period Clauses

The waiting period is the tenure during which you cannot raise a claim. In health insurance plans, there are different types of waiting periods, depending on the type of policy. These can include the initial waiting period (usually 30 days), the pre-existing diseases waiting period (12-48 months), the maternity waiting period (9-36 months), the listed diseases waiting period (12-48 months), and others. 

So, when you understand the waiting period properly, it becomes easier to raise a claim that does not get rejected. 
 

9.Not Aware of NCB

NCB stands for No Claim Bonus. It is rewarded to policyholders who raise no claims during a policy year. It typically increases with each succeeding claim-free year, up to a certain limit.

NCB can be used to obtain discounts during policy renewal or may be offered in another form. It is essential to understand what benefits your insurance provider is offering. 
 

10.Proceeding Without Comparison

Comparing different plans is crucial for selecting the most suitable one. It provides a clearer understanding of the difference between premium and coverage, copay and premium, and the cost of add-ons, among other key details. So, don't rush; compare plans before you choose one. 
 

Winding Up

Over to You

Care Health Supreme and HDFC ERGO Optima Restore are among the best health insurance policies in India today. It is a matter of your priority, coverage depth over cost effectiveness. Here’s a quick recap for you to make an informed decision.

Both offer coverage of up to ₹1 crore; Optima Restore starts at ₹3L, Care Supreme at ₹7L. Supreme offers unlimited recharge; Optima Restore offers 100% once a year, after a claim is made. Care includes OPD + unlimited e-consults; Optima lacks OPD, allows one consultation/year. Care gives a 30% discount + 500% bonus; Optima offers 8% discount + 50% bonus. Care Supreme is costlier but has more features. Optima suits budget buyers; Care fits those needing wider, long-term coverage.

Whichever health insurance plan you choose, ensure to read the policy wordings and seek advice from an expert before you make the purchase. The best health insurance is the one that covers you the way you want to be covered.
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Author Bio

Paybima Team

Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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