Let’s know about some things that should be avoided while purchasing a health plan.
Health insurance is becoming increasingly popular with time and its demand among people is increasing. Sales of health policy are not only increasing in metro cities where the level of awareness is higher than it is, but it is also increasing rapidly in small cities and towns. People in India have come to know that the only way to fight the rising cost of health care and to protect oneself from any serious disease is to buy a Comprehensive Health Insurance Plan.
Most people do not know how to choose a health insurance plan for themselves or their family. Let us know about some things that should be avoided while purchasing a health plan.
To hide things about your medical history
In their eagerness to get a health policy, many people do not disclose their medical history in the application form of the policy. Some people do this because they are aware that being told about these conditions like diabetes, high blood pressure, etc. can cause their application to be rejected and others leave it because of more trouble. Keep in mind that not disclosing any facts is misunderstood by insurance companies and they can reject your claim.
Relying on an employer health plan
Some companies offer health plans to their employees. Because of this, many people feel that there is no need to take a separate health insurance plan. Understand that the group cover given by the employer ends when you leave your job.
Many times people choose the co-pay facility to reduce the premium. Co-pay means that in case of a claim, the policyholder will have to pay some percentage of the expenses themselves (eg 10 per cent). The aim of a health insurance policy is to protect your money as much as possible. Choosing Co-pay is not much of a premium discount.
Treating all health plans as equal
Today there are many health policies in the market such as staple health plan, accident policy, special cover for critical illness etc. The benefits available in every type of policy are different, so do not choose a plan without reading the details of its benefits.
Hoping to get your money back
For many people, insurance is still an option for fixed deposits and mutual funds. People search for a health plan that gives them back some of the premia at maturity. We should not expect some such features in the health plan. Its purpose is to save the expenditure of lakh rupees instead of saving a few thousand rupees in premium.
Over buy policy
While there is less awareness about health insurance in most parts of the country, there is a small portion of the population who buy many health policies. They take an additional rider with a higher coverage amount so that a good part of their income is spent on health insurance. Avoid over-buying insurance plans.
Claiming for small expenses
Some people consider the health insurance policy like an ATM machine which will pay their daily medical and treatment expenses. This is also a misconception. If the policyholder claims repeatedly, he loses the No Claim Bonus (NCB) on renewal. This bonus percentage is added every claim-free year and the discount becomes as high as 50 percent of the premium.
Avoidance of policy renewal
Most Indians take the renewal of insurance policy often lightly. Every year a large number of policyholders fail to renew their policy. Renew your policy at the same time as the utility bill.
(By- Deepak Yohannan, CEO, MyInsuranceClub)
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