Purchasing health insurance can be a daunting task, and when there are numerous health insurance options available, making the right choice becomes all the more difficult. It is very important to know how to buy health insurance in India.
A suitable health insurance plan not only resolves issues pertaining to hospitalization expenses but is also beneficial for securing your savings with rising healthcare inflation costs. When you buy health insurance in India, knowing your healthcare needs, comparing different health insurance plans, and carefully weighing their pros and cons will help you pick the right plan and make an informed choice.
Key Mistakes to Avoid Before Buying a Health Insurance Policy
The decision to buy health insurance in India is an important financial decision that Indians generally make without adequate knowledge or comparison. The common mistakes may even result in multiple cases of rejection of claims, insufficient covers at the most inappropriate times, and higher costs during any medical emergency. Understanding these common mistakes can help you choose a suitable health insurance policy that protects your health as well as your finances.
- Choosing an Insufficient Sum Insured: While choosing the low sum insured in order to avoid higher insurance premiums can be an erroneous choice. Medical inflation in India is rising exponentially; hence, the insured sum may not suffice if it is too low.
- Ignoring Policy Terms and Fine Print: Some of these areas include “exclusions,” “sub-limits,” “co-payments,” and “waiting periods.” Failure to study the policy wording can cause surprises when a policyholder makes a claim under a policy.
- Focusing Only on “Premium”, Not “Coverage: The cheapest option is not always the ideal option. Low premium plans can have limited benefits, room rent limits, fewer network hospitals, so on and so forth.
- Not Checking Network Hospitals: Choosing a policy without reviewing the insurer’s network hospitals can be risky , if the hospital options are restricted, then the individual might face financial hardships during a medical emergency.
- Delaying the Purchase of Health Insurance: Putting health insurance plans off till a later age could result in higher premiums or insurance policy denials due to health concerns.
- Providing Incomplete or Incorrect Medical Disclosure: In case of non-disclosure, or misrepresentation of medical history, claim settlement can be denied. Hence, transparency is required in claim settlement.
Tips to Buy Health Insurance in India
The key to managing your expenses, as well as protecting your savings, lies in investing in a health care plan, especially due to rising healthcare expenses in India. Having the right knowledge about buying a health insurance policy in India is essential to choosing a suitable plan that meets your healthcare needs. By assessing your requirements, comparing various leading health insurance schemes, and carefully going through the policy details, you can choose the plan that is suitable to your needs.
- Consider healthcare requirements based on age and medical history before choosing a policy.
- Choose an adequate sum insured to cover hospitalization expenses, as well as increasing medical inflation.
- Compare several health cover plans to clarify the coverage, exclusions, and differences in premiums.
- Verify the insurer’s hospital network coverage for cashless facilities in the event of emergencies.
- Carefully read terms and conditions such as waiting periods; co-payment provisions; and exclusions.
- Disclose medical information honestly to avoid claims being rejected in the future.
- Buying insurance policies as early as possible, as well as reviewing these policies from time to time.
Key Takeaway
Purchasing health insurance in India demands planning as well as making an informed decision. Therefore, an individual can avoid common pitfalls in this context by being fully clear about the requirements of the product and then choosing one from the list of the most suitable policies. A good health insurance plan not just provides you the benefit of quality healthcare today, but your finances are secured too in the future in terms of rising costs of medical treatments.
Frequently Asked Questions (FAQs)
What is it that you should avoid while purchasing Health Insurance?
Avoid selecting the policy based only upon premium costs and ignoring issues such as exclusions, sub-limits, waiting periods, and non-disclosures of medical history, which may cause problems at the time of claiming.
What is the 80/20 rule in Health Insurance?
The 80/20 rule implies that insurance will cover about 80% of healthcare expenses, while the remaining 20% will be paid by the policyholder in the form of deductibles, co-payments, or uncovered expenses.
If Intending to purchase coverage, what factors should one consider checking for?
Whether purchasing health insurance for yourself or for a family member, ensure you check the sum insured, benefits under the policy, exclusions under the policy, waiting periods, list of network hospitals.
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