5 Common Health Insurance Mistakes

 Health is wealth - a phrase we have been hearing for ages and somewhat getting bored with it. But call it the hectic life of today or any other reason, health is compromised, leading to loss of physical, mental and financial well-being. However, health insurance emerges as the best option to cover financial obligations arising out of health hazards. With growing advertisements around the need for health insurance, people have started buying it. However, most of them still complain about the efficacy of their health insurance policies. The complaint is due to health insurance mistakes they commit with regard to policy selection. Take a look at the mistakes health insurance policyholders should avoid. 

Here are the Mistakes 

Delaying Health Insurance 

Let's face it! We all tend to procrastinate. Even after knowing that a medical treatment can make a huge dent in our pocket, we tend to delay buying health insurance. The delay leads to an excessive premium for the policyholders to pay. As morbidity increases with age, the health insurance company charges more premiums as policyholders age. So, if you are able to buy a health insurance policy for an annual premium of INR 7,000 at the age of 25 years, the same will likely surge to INR 20,000 when buying at 35. 

Choosing a Policy with Inadequate Coverage

Sometimes in a bid to catch a low health insurance premium deal, many compromise on the policy coverage, both in terms of the sum insured and the extent of covered health hazards. A dreadful mistake it can prove to be when claiming health insurance. 

A lower sum insured hinders your policy from covering you sufficiently against the health hazard should you face it later. Ideally, one should choose a health insurance policy with a higher sum insured and coverage against a wide range of ailments. Having an idea of the prevailing cost of several health hazards will help figure out the sum insured amount you should go with. Health insurance policies come with a sum insured ranging from INR 5 lakh - 2 crores.

Ignoring Policy Sub-limits

Health insurance policies come with sub-limits on room rent, ambulance expenses, doctor's fees or other medical expenditures. Sub-limits can be a certain percentage of the sum insured, subject to a maximum limit as stipulated in the policy wording. Ignoring this while choosing a health insurance policy could lead to an unpleasant experience when claiming it. The insurer will not approve all your claim amounts. You will have to pay the unapproved amount by yourself. So, it's important to choose a health insurance policy with minimum sub-limits to reduce your out-of-pocket expenses. 

Erring on Health Insurance Claim Intimation Procedure

Claiming health insurance requires following the procedures spotlessly. There are two types of hospitalisation you may undergo - Planned and Emergency. In a planned hospitalisation, you need to intimate the insurer 48-72 hours before admission by filling the pre-authorisation form at the network hospital. Whereas in case of emergency hospitalisation, policyholders must intimate the insurer within 24 hours of admission. 

Failing to do so will result in claim rejection. Please read the policy document wherein insurers specify terms and conditions regarding the health insurance claim procedure. 

Don't Lie About Your Medical History

The medical history of an individual and his family plays a vital role in the health insurance underwriting process. Insurers can deny offering a health insurance policy to individuals with a poor medical history. This prompts many to hide their medical history. However, when the time comes for claiming health insurance, the insurer rejects the claim on the grounds of concealing medical history. 

While accepting claims, insurers check the medical investigation report created by the competent medical professional upon hospitalisation. The report will likely demonstrate the underlying causes leading to hospitalisation. It will also show how long the patient has been suffering from those underlying causes.

Remember insurance is a faith between the insurer and insured where the former indemnifies the latter for the medical emergency for all true claims. When that trust is breached owing to non-disclosure of information, the insurer can exercise its right to reject the claim.

Wrapping Up

Be clear on health insurance myths and facts to steer clear of any confusion. Read the policy document carefully about each section from policy coverage, premium, sub-limits, waiting period and more. Being clear on all these helps you enjoy a hassle-free health insurance journey. For more such updates, visit zarooribaathai.in.