6 Myths About Health Insurance Policy


4 min read

We all know the importance of health insurance for taking care of hospital bills and medical needs.  Let us take a look at some of the myths that surround a health insurance policy in India, in this post.

A health insurance plan supports individuals to take care of their medical and healthcare requirements without making a hole in their pockets. Of late people are becoming more and more conscious and aware about the significance of health insurance. Thus, they are realizing that health insurance is not a luxury or wasteful expense, rather it is an investment that is required for your financial security.

Nevertheless, though more and more people are aware about the importance of health insurance, there are several myths that are keeping many of them away from buying health insurance plans. Unless these myths are busted, policy seekers will not be comfortable in buying policies and it will affect their health insurance buying decisions.

Visual Stories by PayBima

6 myths and bust

The first myth is that you do not require health insurance when you are young

Most people are of the view that they should buy health insurance policies only during their late 30s or 40s when they are more prone to diseases. It is true that young people are less vulnerable to diseases. However, it is also true that they are not immune against illnesses altogether. So, they also need health insurance coverage to avoid any unavoidable situation or any disease that might attack them while they are young. Further, with the ever-rising cost of the healthcare industry, it is always better to have a backup of insurance so that you do not have a dent in your savings. Also, you may like to buy a health insurance policy your family to cover your aged parents.

Super Top-up Health Insurance from PayBima

The second myth is that the policyholder can enjoy policy benefit from day 1

People generally think that they can file a health insurance claim from the first day of buying an insurance policy. However, the fact is no one can make a claim right at the commencement of a policy. Most health insurance policies levy a waiting period of a month before you could raise a claim, except for accidental claims. Besides that, a waiting period of 12 to 48 months is also levied for certain pre-existing diseases that the insured is already suffering from at the time of purchasing the plan. This might affect the health insurance policies for senior citizens.

The third myth is that health policies offer coverage for dental and cosmetic treatment

You must note that most health insurance policies do not cover dental and cosmetic procedures. These procedures are on the list of exclusions under most health insurance policies. However, if a dental procedure arises due to an accident, it might be covered under some types of health insurance policies.

The fourth myth states that policyholder lose all benefits upon health policy expiry

Health plans are renewed on a yearly basis. Thus, most people are of the view that if they fail to renew it before the maturity date, they will lose all the benefits that are applicable under their plan. However, the fact is every health insurance plan allows a grace period of minimum 15 days to renew a policy beyond the expiry date. However, the policy might terminate if the grace period is missed.

The fifth myth is that a health insurance plan offer coverage to your entire medical bill

Most health insurance policies levy clauses like co-payment and sub-limits to the policyholder and hence the entire amount is not paid by the insurer. The policyholder shares a small percentage of the total bill in case of co-payment depending on the insurance company and the particular policy.

Popular Health Insurance Companies

The last myth that we are discussing here is that Health insurance policies can only be bought online

In the present time, anything can be bought online, including health insurance plans. And the fact is buying a health policy online is extremely safe if you buy it from a reliable insurer after going through the policy document carefully. However, if you are not comfortable in the online buying process, you can buy it offline by visiting a branch of the insurance company.


The best way to avoid these myths is to stay aware about the insurance policies and the various terms and conditions of such policies and to compare health insurance policies in advance. This help a policy seeker to be more confident in buying a good health insurance plan.

Related Articles by PayBima

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

Also, check out the PayBima’s Guide and Glossary section –


View this post on Instagram


A post shared by paybima (@paybima)

FAQs on 6 Myths About Health Insurance Policy

Why is health insurance not popular in India?

The market of health insurance is still in a growing stage in India. However, due to lack of awareness, which is said to be the main reason why health insurance is still not that common in India as in most other countries. Also, the high premium of health insurance is another reason why people skip these policies.

What are the things not covered under health insurance policy?

The procedures that are not covered under best health insurance policy in India include dental treatment, congenital external defects, convalescence, venereal disease, conditions due to intoxicating drugs/alcohol, self-inflicted injuries, AIDS, infertility treatment etc.

Is health insurance really beneficial?

Yes, there are several benefits of having health insurance. Among others, the financial confidence to take care of your loved ones is the most useful benefit of these policies. These policies help people in dealing with the inflation in healthcare treatment.

Why are health insurance claims rejected?

There are some common causes which led to the rejection of health insurance claims. One of the primary reasons is the non-disclosure, or partial/wrong disclosure of important details of the policyholder at the time of buying a plan. Some of the information given wrongly are related to age, income, any pre-existing medical conditions, any current insurance plans already in use etc.

Which is the No 1 health insurance Company in India?

Care Health Insurance Company
Acko General 
Aditya Birla Capital
Bajaj Allianz General Insurance company etc.


Other Health Insurance Products

Mar 06, 2023
Author Bio
Author Image

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.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back