You are enjoying a vacation with your family and suddenly you faint due to high bp or get a heart attack. After your medical treatment, all your medical expenditure is sure to put a heavy dent on your pocket; but if you have a health policy this can reduce your bill. Most of the times we are so busy in our lives that we tend to ignore our health and forget the implications involved. Health insurance is one such thing which we need to take it seriously, cause it protects us and our dear ones against unexpected shots.
Choosing the right health policy is the key to protection and saving that extra cash from huge hospital bills. We tend to so many mistakes while choosing one, let’s see some common silly mistakes and how to avoid them.
1) Late Start: Often we are under impression, that we do not require any health coverage when we are young. We overlook the fact that illness can strike us at any time and that starting early has its perks too. Since, being young means less chances of one suffering from pre-existing diseases, hence its easy to get cheaper cover and accrue no-claim bonuses.
2) Tax Purpose: Another common mistake we do is that we look at health policy as a tax saving instrument. Tax saving is just an advantage we get. The sole purpose should be to cover the health and not save tax. By choosing a tax saving scheme, we might choose a wrong policy and not get adequate coverage.
3) Hiding Medical History/ Providing Incorrect Details: Hiding relevant medical details of any existing medical condition can lead to rejection of claims during the time of need. This leads to ruining your reputation as well. Similarly, by providing any wrong details also leads to non-approvals on getting caught and tarnishing your image.
4) Avoid Fine Print: The health policy is a huge contract written in fine print. It covers all the relevant details like the inclusions and exclusions, in-network coverage and what medical procedures or disease ailments are covered. We make a big mistake and skip on reading these very important terms and conditions of the policy which affects our whole financial plan. Hence, it’s important to read the fine print of the policy in detail to get a general idea of it and how it affects during the time of claim into the future. So, once after buying a policy, carefully read it in 15 days to understand, if one isn’t satisfied with any specific clause he can cancel it and ask for his money back as per T policies.
5) Ignorance of co-pay clause: A co-payment clause is levied on some medical conditions for treatment in certain cities or non-network hospitals and also for senior citizens. This clause states that one can share the treatment cost with the insurer , which could be anywhere between 10% to 20%. If one chooses for a higher co-pay percentage, the premium outgo declines.
6) Relying Only on Employer Paid Insurance: Another error we commit is to rely only on the employer’s paid insurance which generally is not customized to our unique needs. There might be several exclusions and inadequate coverage. One can supplement a family floater policy to cover every family member under one plan. Also, one can use the employer’s policy for claims, which allows to accrue a no claim bonus on one’s own policy.
7) Buying an Additional Plan: A grave error of buying an extra policy is not very cost effective. As mentioned earlier a top up or adding a rider can save money and enhances the health insurance policy.
8) Avoid Comparison: We tend to avoid comparing health policies in more depth. This comparison is a must as it helps in actually showing the list of hospitals covered and other relevant exclusion or inclusion clauses.
9) Ignore Reviewing the Policy: Always review existing policy before renewal. Compare its expenditure levels with current market rates of various treatments covered under existing policy. If one comes across any new clause or raised premium levels, ask about it and various other top-ups or add-ons, or any switch riders.