Health insurance is one of the most crucial aspects of a well-balanced financial portfolio. And while a faulty investment can be rectified, a bad health insurance plan could land you in a heap of debt and trouble. So, if you’re in the market for a good health plan, here are a few things you need to avoid doing before you finally make that purchase:
1. Lying About Your Medical History
This is possibly the worst mistake you could make while purchasing health insurance. Say you suffer from a pre-existing disease, but fail to disclose this on your application. If you end up getting hospitalised or undergo treatment for the same, your claim request could be rejected and your policy nullified if the insurer finds out you knowingly provided false information on your application.
2. Ignoring the Fine Print
Terms and conditions come with every kind of insurance policy. It’s important to look through the insurance plan’s exclusions, understand what the waiting period is, and check the terms and conditions under which your claim might not be approved. If you don’t do this before or as soon as you get the policy, you could end up having to shell out money from your pocket for procedures that you hoped would be covered by insurance.
3. Skipping Over the Co-Pay Clause
In order to keep claims in check, insurance providers came up with a co-pay clause. For certain procedures, you can opt to pay a percentage of the total claim amount, and the insurance provider will look after the rest. While you can opt in or out of the co-payment clause, it’s important to be aware of what you’re getting into if you decide to opt in and benefit from lower premiums. You might end up spending quite a lot of money for an expensive procedure.
4. Paying Attention Solely to the Premium Amount
Several people choose their health policy based on the kind of premiums they will be required to pay. Sadly, what you can save on premiums may cost you later when it comes to actually getting claims settled. Policies with lower premiums generally have more exclusions and fewer features. On the other hand, for a slightly higher premium, you could end up getting more cover, which is definitely beneficial in the long run.
5. Buying Insurance Only for the Tax Benefits
According to Section 80D of the Income Tax Act of India, premiums paid for health policies are exempt from tax. However, buying insurance solely for the purpose of lowering your tax liability is a terrible idea. If you’re only focused on the kind of tax benefits rather than the health benefits, you could end up buying a policy that doesn’t provide adequate cover, and could leave you high and dry when you really need it.
Now that you know what not to do while purchasing health insurance, go ahead and find yourself a policy that offers you financial stability and security during a medical crisis. At the end of the day, that’s what a health policy is for.