Top 5 Common Mistakes to Avoid While Buying Health Insurance

The health insurance sector in India has undergone a massive change lately. The ever-increasing cost of quality healthcare has made people think seriously about investing in health insurance plans to secure theirs as well as their loved ones’ health.

For many people, health is of the foremost priority as the absence of a proper healthcare plan can easily wipe all their earnings and savings in case of an emergency.

It’s understandable that finding an affordable, yet the best health insurance isn’t an easy job; however, a little homework can certainly help you choose the best. To help you out with your search, we have enlisted 5 mistakes that you should absolutely avoid to get the best plan at the best available price:

1. Solely Focussing on Premium Amount and Deductibles

Undoubtedly, it is one of the most common mistakes that people tend to make while shopping for health insurance policies. It’s a normal tendency amongst people to focus on the initial cost/premium they need to pay rather than the coverage they will require or get when the need arises.

Yes, it does help you save a small amount in the beginning but it certainly leaves you wanting in regards to the insurance coverage.

For instance, let’s say that you have purchased a health plan with a deductible amount of Rs 5,000 and this deductible significantly reduced your premium. Unfortunately, you met with an accident and the bill amount equalled to Rs. 10,000. In such a case, you’ll have to pay Rs. 5000 by yourself before the insurer pays the other 5. Therefore, in the long run, deductibles will significantly increase your out-of-pocket payments.

2. Overlooking the Fine Print

It’s a good thing that you are keen to know about all the benefits you are going to get in your medical cover, but what about the list of exclusions?

There is always a possibility that you have missed something from the list of exclusions while purchasing the plan. You’ll be in for a rude surprise if the treatment you are seeking isn’t covered by the plan. Most of the people fail to realize the importance of these ­printed details and don’t find it necessary to read the policy document carefully.

Avoiding interaction and not clearing your doubts will actually complicate things and will end up costing you more money than simplifying things. Hence, utilize your time wisely before signing the deal.

3. Not Paying Attention to Zone-Based Pricing

There is a possibility that you might have heard, but have never paid attention to, the fact that the health insurers actually price their insurance policies according to city zones.

Metropolitans are Tier-I cities where the premium will always be costlier as compared to Tier-II and Tier-III cities. If you belong to a Tier-II or Tier-III city and have good and reputed hospitals nearby where you can get quality healthcare, you can use this feature to your advantage.

Here, it’s important to understand that there are some insurers that restrict your coverage if you are planning to move to a Tier-I city for advanced medical treatment.

4. Over-insuring Yourself

Before finalizing your decision, ask yourself this question – are you really going to need all of the coverage you are signing up for? If you are following a healthy lifestyle and don’t have to visit your doctor often and don’t have any chronic health issues, you most probably don’t need the platinum plan offered by a provider.

A bronze, silver or a gold plan will be more than sufficient to take care of your medical needs and once again, you will save yourself a good amount by not paying an exorbitant sum for a platinum plan that you shouldn’t have chosen in the first place.

5. Not Considering Other Insurers

In a super busy and hectic life-schedule followed these days, it is not an easy job to find time to shop around and go through each and every option before finalizing the best health insurance plan that meets all your criterions. However, circumstances change, people change, and so does your current insurance provider’s pricing structure. Hence, exploring other options can easily help you save you a good amount of money.

Conclusion:

Assuming one size fits all will not help you get the best deal when it comes to buying a health insurance policy. Every individual’s medical conditions and needs are different which means that a policy which is perfect for your friend or relative might not necessarily be perfect for you too.

Thus, take time to figure out your medical needs, shop around, do a thorough comparison of plans & benefits and then, finally, choose the medical cover that makes sense and meets your insurance needs.