Common Errors You Need to Avoid When Buying a Health Insurance Policy

When you buy a health insurance policy, you could make several mistakes, resulting in your claims getting cancelled, or you may have to bear the brunt of heavy medical expenses. The deadly COVID-19 pandemic has impacted lives across the world. With the onset of the pandemic, there has been an increase in the country’s awareness and demand for health insurance policies.

A health insurance policy has now become a necessity versus an option in everyone’s lives. When you have a health insurance plan, you will safeguard yourself financially against hereditary diseases, illnesses, and accidental injuries. Following are a few mistakes you could avoid while purchasing a health insurance policy.

Relying entirely on your employer’s health insurance policy

As a salaried individual, you will mostly be covered under a group health insurance policy provided by your employer. However, not many realise that you may not be covered under any insurance policy when you change jobs. Also, it will be tedious and expensive to obtain family health insurance after you retire, and that is when you will need the insurance the most.

Missing to declare your pre-existing medical ailments or tobacco habits

Do not miss to declare your pre-existing medical conditions or habits, such as tobacco or alcohol consumption, when applying for individual or family health insurance. This is because an insurer can deny a claim or even cancel an insurance policy if an insured individual is hospitalised. The doctors detect a pre-existing medical ailment or observe tobacco/alcohol consumption that was not declared while purchasing the insurance policy.

Not purchasing a family health insurance policy

Another common mistake is not to purchase a family health insurance or having a low sum insured. Never look at a health insurance premium as an unwanted expense. Consider it as a compulsory saving towards your hospitalisation expenses in future.

Relying on local insurance agents blindly

Never trust a ‘friendly neighbourhood agent’ blindly, assuming they will help you get your claims approved when a requirement arises. Most of the claims are reduced or declined because of conditions and sub-limits mentioned in the policy wording, which are often skipped since it is too difficult to read and understand. 

Most people think that they are unlikely to get hospitalised for any serious illness when they are young. This myth needs to be busted; these pandemic times have taught each of us the importance of having a health insurance policy.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in