10 Common Myths About Health Insurance

Health Insurance Policy:

Health insurance is a type of insurance that covers the policyholder against any medical needs. The policyholder has to select the amount and type of health insurance coverage for which they have to pay the premium to the insurer. In case of an illness or injury, a policyholder can make a claim to the insurance company to reimburse the expenses incurred for treatment.

Top 10 Common Myths About Health Insurance:

1. Children and young people do not need health insurance:

Many people believe that health insurance is only for old people, who are more likely to need medical attention. It is mainly because people think health insurance only offers critical illness cover. In fact, all individuals, irrespective of their age, should have health insurance cover. Health insurance plan extends its coverage to accidental injuries, illnesses, and medical expenses arising out of any reason. An illness or an accident can occur to anyone without notice, and having a health insurance cover can reduce your financial stress during tough times. Apart from this, buying a health insurance policy at an early age will help you accumulate more No Claim Bonus, which will help you get increased coverage at an affordable premium.

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2. The health insurance cover starts right from the time you buy the health insurance policy:

Another myth about health insurance is that the cover will start immediately after you buy a health insurance plan. However, unlike life insurance, the start date of your health insurance cover can differ for different diseases. The basic coverage of some insurance companies may start from 30 days to 45 days. Whereas, many diseases have a waiting period of 1 to 4 years, depending on the insurer's terms and conditions. Besides, every insurer will have a list of exclusions that contains the list of diseases that are excluded from the cover. Therefore, it is advisable to read the list of inclusions and exclusions before purchasing the health insurance policy to have a clear idea of what all coverages are provided and exempted from the policy.

3. You should choose the health insurance policy that comes for the lowest premium:

Comparing different health insurance plans is the first step of buying health insurance. However, many individuals consider it an only premium factor for comparison. Although such policies make it look like you are saving a considerable amount on the premium, they might come with restricting offerings. Therefore, it would help if you compare the plans with different factors when buying the policy. Apart from the premium, some of the key factors you should consider when comparing health insurance plans are benefits offered, network hospitals, claim settlement process, claim settlement ratio, company reputation, convenience to buy and renew the policy, policy inclusions, policy exclusions, and terms and conditions.

4. Group health insurance will be sufficient:

Many salaried individuals receive group health insurance or corporate health insurance from their employer and believe that it will be sufficient to meet their family medical needs. However, the limit of the group health insurance coverage is governed by the group claim ratio.

Moreover, most employers provide only basic cover of 2 lakhs to 5 lakhs, depending upon the employee's position and size of the company. Since the cover is offered only to the employee and their dependents, the other members of your family are required to buy separate policies. Considering the skyrocketing medical expenses, this cover might not be sufficient to meet your family's needs. Besides, if you change the company, you will lose all the benefits earned and have to survive the waiting periods again for specific diseases.

Therefore, in addition to the group health insurance plan, it is advisable to buy a separate individual health insurance plan or family floater plan, depending on your requirements. Click here to know how to make a claim with multiple health insurance policies.

5. Health insurance plans do not extend their coverage to maternity cover:

It is a common misconception that health insurance policies do not offer maternity cover. In fact, many insurers have maternity cover included in their base plan. Some insurers offer it as an additional cover that can be purchased with a nominal increase in the premium. However, the maternity cover generally comes with a waiting period of 1 year to 3 years.

6. Health insurance is a solution to all your medical needs:

Some people believe that they can claim under the health insurance policy for anything and everything. But, unfortunately, that's not true. Different insurers have different terms and conditions, and some diseases that are covered by one insurer might not be covered by the other. Plus, certain diseases come with a waiting period. Hence, it is advisable to do your research thoroughly before buying a policy and make sure if you are looking for any specific cover, it is provided by the insurer.

7. Hiding certain details will help you save money:

When buying a health insurance policy, a policyholder has to provide the correct information about their health and family health history. They also have to disclose the lifestyle habits like smoking and drinking. Many individuals believe that hiding certain details or not disclosing them will help them save some amount on the premium. However, doing so can lead to claim rejection when in times of need. Hence, you should always provide correct information to the insurer to avoid any claim rejections in the future.

8. You need 24 hours of hospitalisation to make a claim:

A large number of people think that they need to be hospitalised for at least 24 hours to make a claim with the insurer. However, the insurers provide the list of daycare procedures that are covered under the policy that does not have any condition of minimum hours of hospitalisation. These daycare procedures typically include chemotherapy, radiotherapy, angiography, liver aspiration, cataract surgery, etc.

9. Purchase of online health insurance is not safe:

Although many people prefer the online purchase of health insurance, some people still believe that buying online health insurance is not safe. This misconception has been built due to the increased number of online frauds. It is true that you need to take necessary precautions when making an online purchase, like making sure you are buying from the insurer's authentic website, understanding the product and terms and conditions, choosing a secured network to make the payment, etc. Buying an online health insurance plan has several benefits: convenience to compare different plans, quick and easy buying process, lower premium, etc. Besides, an insurance agent can manipulate you to buy a policy that offers them a higher commission and may not disclose all the terms and conditions in order to make a sale. But when buying an online health insurance policy, you will see all the policy details online.

10. Old health insurance policy documents are of no use:

Many people generally discard the old health insurance policy documents thinking they will be of no use. In reality, these documents are proof that you were insured for the last many years. It will help you to get a no claim bonus, eliminate the waiting period of the new policy, and most importantly help you at the time of claim.

To Conclude:

Now that you know about the common health insurance myths, do not believe them when buying a health insurance policy or making a claim. With the constantly increasing medical inflation, the opt of medical treatments can drain your savings. But, if you have a well-researched health insurance plan, you will not have to break your investments or borrow money. It is advisable to buy a health insurance policy online for the many benefits we discussed already. Make sure you do a proper comparison of different health insurance plans, carefully read the policy wording and terms and conditions, and buy a policy that suits you the best. Knowing all these misconceptions will help you be clear in your thoughts and make an informed decision when buying and renewing your policy and making a claim.

Warm Regards,
Ketki Jadhav
Content Writer