When it comes to buying health insurance plans, even smart people make several mistakes that result in the cancellation of claims or heavy medical expenses.
The devastation caused by Covid -19 pandemic since last year has led to growing awareness and demand for health insurance plans in India. In the wake of rising medical expenses, health insurance plans have become a necessity in today’s times. If you are covered under a health insurance plan, you can protect yourself financially against lifestyle illnesses, hereditary diseases and even accidental injuries.
However, when it comes to buying health insurance plans, even smart people make several mistakes that result in the cancellation of claims or heavy medical expenses. Here’s a look at some of the top health insurance mistakes made even by smart people:
Not having a family health insurance
According to Vivek Narain, Co-founder & Promoter, Sana Health Solutions, the first common mistake even smart people make in health insurance is to not have a family health insurance at all, or have a low sum insured. “When they are young, they have the mistaken belief that they are unlikely to be hospitalized for any serious illness. They look at health insurance premium as an unnecessary expense, and not as a mandatory saving towards hospitalization expenses in future,” Narain told FE Online.
Reliance on employer’s Group health insurance policy
Salaried people mostly only on their employer’s group health insurance, without realizing that they will be without cover while switching jobs. In particular, they miss the fact that it will be much more difficult and expensive to get family health insurance after retirement when they will need it the most!
Not declaring pre-existing medical conditions, or tobacco habits
According to Narain, one of the most common mistakes that people make is to not fully declare pre-existing medical conditions or risky habits (such as tobacco or excessive alcohol consumption) at the time of applying for individual or family health insurance.
“They feel that declaring these facts can lead to medical tests or higher premium or both, and if they keep quiet about it nobody would know. However, they ignore the fact that insurers can deny claims or even cancel a policy if the insured is hospitalized, and the doctors detect a pre-existing medical condition or risky habit. In fact, they must fully declare any medical conditions or habits even at the time of renewal, in case they are seeking an increase in sum insured,” he said.
Blindly trusting insurance local insurance agents
Another common mistake people make while buying family health insurance, is to blindly trust the “friendly neighbourhood agent” in the mistaken notion that they will get their claims approved when the need arises.
The fact is that many claims get declined or reduced due to conditions and sub-limits that are stated in the details of the policy wording, which they often skip as too difficult to read and interpret.