Finance

8 Mistakes To Avoid When Buying Health Insurance

It is not just enough to simply buy health insurance…you need to buy the RIGHT health insurance plan for yourself. And, with so many plans available out there, the choice can often get quite confusing. You might end up making a mistake or two that can end up costing you. To help you out, we have listed down 8 common mistakes that you must avoid when buying health insurance. Let’s get started –

  1. Choosing the cheapest plan available

Many people often make the mistake of choosing the cheapest plan available. This plan might seem affordable but may not offer enough coverage for your needs. Never choose a plan simply because it is cheap or works for a friend or colleague; always examine the coverage and pay a bit more for what you need.

  1. Not comparing insurance companies

When buying health insurance, do not simply pick the first plan that you come across. If you do that, you may miss out on some better deals for coverage out there.

  1. Not including riders

Insurers offer riders so you can customise your plan. You can add a rider that covers critical illnesses or even one that offers daily hospital cash. Do not skip out on these riders as they can really improve the coverage of your plan.

  1. Providing incorrect information

Submitting incorrect information is one of the biggest mistakes you can make when buying health insurance.  Whether you submit incorrect information by mistake or on purpose, you could face hassles when raising a claim. Remember to check all the details you give the insurer and be truthful when filling up your application form.

  1. Forgetting to read the policy fine print

Even if the agent has explained the coverage to you, you should take a few minutes to read the policy fine print yourself. This way, you will know certain details that you might otherwise miss out on, such as the policy’s exclusions.

  1. Not exploring plans online

Insurers offer some of their best plans on their websites. If you do not explore the online option for buying coverage, you may miss out on some really great plans at affordable premiums.

  1. Not learning health insurance jargon

When buying health insurance, try to familiarize yourself with some basic health insurance jargon. This way, you will know the exact details of the coverage you are buying. Many words like ‘co-pay’ or ‘no-claims bonus’ might seem confusing if you are buying health insurance for the first time. Reading up a bit on them can make things a lot easier.

  1. Forgetting to check the location of network hospitals

If the network hospitals are quite far away from where you live, you may not be able to reach them easily and avail cashless facility. Always check the location of the insurer’s cashless hospitals – ensure that at least 2 to 3 are located close to home.

Make sure to avoid these mistakes when buying health insurance. Remember to also explore other health insurance products such as critical illness insurance for complete coverage.

Take care.

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