Top 5 Mistakes to Avoid While Buying Health Insurance

Buying Health Insurance plan is one of the tasks that should be in every person’s to-do list. But, buying an insurance plan is not as easy as buying groceries. Thousands of insurance providers offer thousands of insurance plans with different coverage amounts and policies. Buying an insurance plan in a hurry without getting completely acquainted with the plan can result in problems and unpleasant experiences at the time of the claim. Therefore, here are a few common mistakes that insurance applicants make and how to avoid them to have a smooth claim experience.

1. Under-Insuring Yourself

One of the most common mistakes made by Health Insurance applicants is to skimp on the coverage amount. People lower the premium amount, which in turn, lowers their coverage amount. If you think of doing do, you should always calculate whether the coverage amount will be sufficient in the long run or not. While choosing a cover amount, you should consider various factors like the number of members to be covered in your plan, the city you live in, family disease history, and current medical expenses. If you are on a limited budget, you may go for a top-up plan to supplement your cover but make sure you always select a high coverage amount.

2. Overlooking the Sub-Limits

While buying Health Insurance plans, people rarely bother to look at the applicable limits and sub-limits of the coverage policy. As a consequence of this mistake, you face a financial strain when your medical bills are presented in excess of the sub-limits. The people who have faced this condition before should be careful about these clauses in their insurance policy before buying it.

For those who are yet to purchase health insurance, you should always be aware of the limits and sub-limits that are associated with the coverage benefits. The most common form of sub-limits is the room rent sub-limit that is included in the inpatient hospitalization coverage. Sub-limits have an effect on the total hospitalization claim, and thus, you should always check the sub-limits before buying any health insurance plan. The best option is to buy plans that have high coverage limits and minimal or no sub-limits.

3. Not Considering the Exclusions

Nowadays, Health Insurance plans are highly comprehensive. But, all the insurance plans are not universal when it comes to coverage. There are a few conditions that are excluded from the extent of coverage in any plan. People who don’t properly study the insurance plan end up getting their claim rejected because the illness or treatment was not included in the plan. Therefore, you should equally prioritize the exclusions of ailments or treatments in an insurance plan. This helps you get a clear picture of what is covered and what is excluded in the plan. Having this knowledge enables you to make the right choice to buy a plan and also to make a claim accordingly.

4. Not Disclosing Your Previous Illnesses

Some people choose to hide their existing medical conditions or medical history. They fear that their application for the Health Insurance will be rejected or they have to pay higher premiums. This mistake is something you should avoid at all costs because if the insurer finds out that you intentionally tried to fraud the insurance company, your claim will be rejected in no time.

Therefore, you should never cheat with the insurance company. Insurance plans are contracts that are based on faith as it is based on the information you provide. It is essential to be truthful when you buy a health plan. Disclosing your medical history or past ailments might increase the cost of your premiums, but you will face no difficulties while receiving the claim as the insurance company was already aware of your condition and risks.

5. Copying the Insurance Policy of Your Friends or Family Members

This mistake is common. Do you drive the same car your friends drive? Do you wear the same clothes your relatives wear? Then why consider buying a Health Insurance plan that your friends or relatives have? Every individual and every individual family has different needs, medical histories, and coverage requirements. Therefore, the plan that is ideal for someone else might not be suitable for you.

Before buying a Health Insurance plan, you should carefully compare various insurance plans that offer different coverage and features. Internet is a great medium as you can compare thousands of health insurance plans online. You can compare plans on their coverage, features, premiums, sub-limits, etc. Buy a plan only after you realize that the plan is ideal for your situation and meets your requirements.

Making mistakes while choosing Health Insurance is common, and the most common cause of these mistakes is the lack of knowledge. Therefore, study multiple insurance plans and talk to different people with health insurance to understand what suits you the best.

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