Mistakes to Avoid While Buying Your Health insurance Policy
Health insurance is imperative among all, but most people pay little attention to the nitty-gritty. Now, this COVID-19 pandemic is an eye-opener, and people are trying to maintain the balance of their lives by purchasing the right health insurance policies. Apart from taking care of your health, health insurance also offers financial assistance for medical bills. Without this policy, your hospital bills might diminish your savings that can impact your quality of life.
There are certain mistakes that policy buyers often commit while purchasing health insurance policies for their healthcare needs. These mistakes could be disastrous if you don’t know how to avoid them. Let’s take a look at the top 5 mistakes that you should shun while purchasing or renewing health insurance policies.
Mistakes to Avoid While Buying Health Insurance
Not getting enough coverage from the beginning.
While purchasing health insurance policies, people give priority to the cost factors. Most people purchase products based on their prices, and the same goes for health insurance policies. People prefer those policies that come with budget-friendly premiums. But if you consider only the price, you may end up in a big mess later. If you select a policy based on its affordability, you may not get the returns/coverage you are hoping for. Under any healthcare emergency, this might not sufficiently cover your hospital receipts.
Avoid the finer details of your policy
Everyone reads the catalog while purchasing a new TV or fridge. But people often ignore checking the finer details of their policies. These details are important as they give you an idea of when and where your policy is acceptable. This will help you to plan your future meticulously so that you can sustain yourself during an emergency. In addition, this will help you to understand whether you should proceed with your selected policy or not.
Don’t miss the co-pay clause
Before making any commitment, always read and understand your policy to make your purchase worthy. The co-pay clause means the amount that an insured person needs to pay from his pocket under any hospitalization. The insured person needs to pay a certain portion of the bills, and the insurer covers the remaining amount. This split could be a 50-50 split, or you may need to pay 10% – 40%, and the insurer needs to pay the remaining 90% – 60%. Based on the type of policy, this split is decided. The policies that come with the co-play clause tend to have lower premiums. So, think carefully before purchasing an affordable policy.
Concealing relevant medical history
Very often policy buyers often conceal their medical history, thinking that their application might get declined by the company or they may need to pay hefty premiums. This is a common blunder that most people commit at the time of purchasing a policy. If the company discovers during a claim that you deliberately hide your medical history while buying the policy, then the company will reject your claim for that existing condition.
Based on your submitted information, the insurance contracts are designed. That’s why you don’t mislead anything while purchasing a health insurance plan. Though a poor medical condition may enhance your premium, your claim will be honored by the insurance company.
Avoiding waiting periods and exclusions
The waiting period plays a pivotal role in health insurance policies. Most policies come with a waiting period of 2 years for pre-existing conditions. Check the list of diseases that have this waiting period before investing a single penny. In addition, always check for other policies that have stringent waiting periods to get the best treatment for your ailments.
Another important factor that you need to consider is the exclusions. Don’t purchase a health insurance plan if it excludes the most common diseases and their treatments. Go through the policy details carefully to understand what is included and excluded under your plan. If you know your policy does not cover your pre-existing conditions and that, then select another policy that covers it or at least a certain part of the ailment.
These are the top 5 mistakes that you should avoid while buying your next policy. There are also some other mistakes that you should take care of while purchasing a health insurance plan.
Depend on the Employers Health Insurance or Trust a Single Insurer
These days, many employers are offering employee health insurance policies for the betterment of employees. Though this is advantageous for employees, when you decide to discontinue your job, you will also lose the policy’s benefits. Similarly, when you trust one health insurance company and don’t consider other policy plans, you may not get the best deal in terms of coverage. Therefore, always explore other policies and find out the most suitable option for you.
Consider a standard policy
Most insurance companies embrace their customers with basic coverage in their standard policy. This standard policy doesn’t cover many illnesses and situations. But a customer is free to purchase specific add-ons depending on their requirements and needs. But you need to pay a higher premium because of these add-ons. That’s why most people buy a standard health insurance policy.
Before purchasing a policy, check the list of add-ons that your insurer is offering. Then, handpick the best one as per your requirements. Add-ons like critical illnesses and personal accidents are worthy, and these may enhance your premium slightly.
You should be careful about these mistakes while purchasing a health insurance policy. A comprehensive health insurance policy will take care of your hospital billings and expenses and safeguard you from various ailments.