Common health insurance mistakes and ways to avoid them – The Financial Express
To avoid an unforeseeable medical emergency or large premium payments for coverage later, Mayne suggests, one should opt for a health plan young so that one gets wider coverage and the waiting periods are over before the actual need arises.
With dozens of health insurance companies fighting tooth and nail for business, picking the right plan to suit your needs can get daunting even for the savviest of buyers. You may find yourself in a situation where you have all the essential features that you need to be covered but are unwilling to pay extra for services that you don’t anticipate using.
John Mayne, Executive Director at Coverfox.com, says, “The medical inflation of India was at 7.7 per cent in June 2021 as against 3.8 per cent in Dec 2019. Even the cost of hospitalization has gone through the roof, especially with the pandemic. This is why it’s worth it to carefully weigh one’s options with medical insurance before settling on a plan.”
Here are some of the common mistakes and how to avoid them:
Insufficient coverage:
If you are looking for coverage that will be available at the time of a medical emergency, it would be a good idea to pick an option with unrestricted benefit. Check the pre and post-hospitalization expenses, availability of health check-ups, waiting period, etc.
Mayne says, “A thumb rule states that medical coverage should be equal to 50 per cent of your annual income added with 100 per cent of all hospitalization expenses in the last 3 years. However, most people do not have sufficient coverage and it is not increased according to a rise in income.”
Not disclosing all medical conditions:
Experts say it is imperative to disclose all medical conditions of self and family history at the time of opting for the health plan so that there is no concern at the time of claim.
Not understanding all terms and conditions:
Some health plans have room rent capping, co-payment and deductibles, which is not considered at the time of opting for a plan. “When it comes to the claim settlement, failing to read the exclusion list when purchasing an insurance plan may cost the policyholder a lot of money,” says Mayne.
Insufficient research:
With the advent of technology, every detail is available online. Experts point out this is where research plays an important role. Comparing the plans, reading the fine print of every policy has become important and needs to be considered before opting for the plan.
Not upgrading with change in lifestyle:
Lifestyle ailments are on the rise and hence needs to be covered adequately. Critical illnesses, personal accident coverage, etc. needs to be availed either as an add-on or as a separate standalone plan.
Purchasing health insurance only in old age:
To avoid an unforeseeable medical emergency or large premium payments for coverage later, Mayne suggests, one should opt for a health plan young so that one gets wider coverage and the waiting periods are over before the actual need arises.
The out-of-pocket expenses in India are as high as 62.6 per cent of the total medical expenses, which means only 37.4 per cent is covered by health insurance provided by the government, organisation and self.
“If these common mistakes are avoided at the time of opting for the health insurance plan, it would ensure that one does not need to dip into their savings to pay for the healthcare treatments,” adds Mayne.
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