You have probably encountered the unpredictable nature of life and the need to be ready to face the challenge, whether it’s starting your career, raising a family or getting ready to retire. Your employer or other current plans may already provide you with some health cover. Yet have you ever stopped to consider whether or not your present coverage really provides you and your loved ones with good coverage?
Healthcare costs are increasing at a very high rate and a medical emergency can take place at any time. Instead of dumping all your money into basic coverage and later on end up paying for medical needs, you should thoroughly get into the details of the health insurance plans and choose one that stands out with you in times of need.
In this guide, we will list the most common mistakes people make while buying health insurance, ensuring that your investment truly provides you and your family the protection and peace of mind you deserve.
1. Looking for the Lowest Premium
One is tempted to rank the health insurance plans in terms of price and choose the one that is the least expensive. However, in the health department, the cheapest price may turn out to be the most costly decision in the end.
Why It’s a Mistake
Medical insurance policy that cost a lot are usually cheap for a reason. It could have a lot of limits, like not enough coverage for major procedures at a good hospital, limits on certain costs, such as rent for a room, surgeon’s fees, or certain treatments, and others.
Don’t just look at the price; look at the value too. Even if it costs a little more, look for a plan that covers a lot. A comprehensive plan is a way to get quality care.
2:Not Paying Attention to Waiting Periods
You buy health insurance today and think you’re covered starting tomorrow. This is one of the most dangerous mistakes. There are waiting periods for every policy. These are the times when certain coverages become active.
The Different Types of Waiting Periods
- First Waiting Period: This is usually 30 days from the start date of the policy, and during this time, no claims are accepted except for emergency hospitalisations.
- Waiting Period for Pre-Existing Disease (PED): You have to wait 2 to 4 years after you buy the policy before you can get any medical care for conditions you already have.
- Specific Illness Waiting Period: You have to wait 1 to 2 years before your insurance will cover certain conditions, like hernias, cataracts, or joint replacements.
You should read the waiting period clauses very carefully. If you or someone in your family has a pre-existing condition, look for a health insurance company that has a shorter waiting period for PEDs.
3:Not Paying Attention to Co-Payments and Sub-Limits
This is where the devil is truly in the details. There are clauses in the policy document that can greatly lower the amount an insurer pays out during a claim.
Understanding the Terms
- Sub-limits: These are limits on certain costs. The “Room Rent Limit” is the most common one. If your policy has a 1% sub-limit on a ₹5 lakh sum insured, the most your insurer will pay for the room is ₹5,000 per day. If you pick a room that costs ₹8,000, you not only pay the extra ₹3,000 for the room, but you also pay a part of the entire hospital bill because many costs are based on the type of room.
- Co-payment: This is a part of the agreement where you agree to pay a set percentage of the total claim amount (for example, 10% or 20%) and the insurance company pays the rest. It lowers your premium, but it raises the amount you have to pay out of your own pocket when you file a claim.
You should look for medical insurance plans that don’t have any limits on room rent, or at least very low limits. Moreover, be careful with co-payment clauses unless you are okay with sharing the cost and consequently lowering the premium.
4: Not Knowing How Much Coverage You Need (Sum Insured)
Five years ago, a huge amount of insurance might have seemed like a lot. Today, it might not be enough to pay for one major surgery in a big city. Medical costs in India are going up by more than 10% each year, and not having enough insurance is a common mistake.
Why a Low Sum Insured is Dangerous
A single hospital stay for a serious illness or accident can easily cost several lakhs of rupees. If you run out of your sum insured, you’ll have to pay the rest out of your own pocket, which will use up your savings. A higher sum insured gives a family, especially elderly parents, a much stronger financial shield. This is an important thing to think about when picking a family health insurance plan.
You should choose a sum insured of at least ₹10–15 lakh. A base plan with a super top-up policy is even better. This is an affordable way to get more coverage without paying a lot of money.
5: Not Looking at the List of Network Hospitals
The quality of the hospitals that your health insurance plan lets you use is what makes it a compelling choice. Each insurance company has a list of “network hospitals” where they offer cashless treatment, which means the insurer directly settles the bill with the hospital.
The Cashless Benefit
The cashless feature is a lifesaver. It means you won’t have to get a lot of cash during a medical emergency. You just get the treatment, and the hospital and the health insurance company take care of the paperwork.
This is very important for your parents. You need the assurance that if a parent needs to go to the hospital, they can walk into a top-notch one in their city without having to worry about how to pay for it. Before you buy a health insurance policy, make sure that the best hospitals in your area are on the insurer’s network list.
Final Note
Picking the right health insurance policy isn’t just a matter of checking a box; it’s a way to protect your family’s finances. It’s a promise that you’ll always be there for them, no matter where you are in the world. Your financial planning should show that you can see the future. A sudden medical emergency shouldn’t stop you from reaching your financial goals or keep you up at night. This is why it’s important to have a comprehensive health plan.
Niva Bupa has health insurance plans that are designed to give you and your family full coverage when you need it most. Avoid the heavy burden of out-of-pocket costs and make sure you and your parents can always get quality medical care. Check out their health insurance options today and invest in the best security: your family’s health and your own peace of mind.