- Health insurance is a must in these times of high stress and busy lifestyle
- Most people purchase health insurance policy without giving much thought
- Hasty decisions lead to insufficient coverage or even rejections
- The mistakes listed below must be avoided at all costs
Health insurance policies are becoming a necessity for every Indian. The increased cost of living, busy lifestyles, high stress and worsening environmental conditions have combined to form a situation in which trips to the doctor, or even the hospital have become a regular thing.
There are many individuals, who, in a rush to protect themselves and their family members from high medical costs, overlook certain key aspects of a health insurance policy, only to regret it later. Here we list some common mistakes that people make:
Merely purchasing a health insurance policy is not enough. One should make sure that the coverage amount is adequate. Many individuals, just to keep their monthly premium outgo on the lower side, deliberately opt for a lower sum insured. This can prove to be a costly mistake in times of emergency, as one will realise that the coverage just isn’t enough. Then, the individual will be left with no choice but to meet the expenses by drawing money from his/her savings.
Not buying a personal health insurance cover
A working individual gets several benefits from his employer. Health insurance is among one of these benefits for many people. But since it is a group health cover, the coverage is not sufficient to take care of the entire family. Moreover, when a person quits the job, the insurance coverage also terminates. Therefore, it is better to purchase an individual health insurance policy that will always be with you, no matter which job you are in.
Diseases like heart disease and cancer are on rise today. Sedentary lifestyle, irregular working hours and improper food habits are leading to such critical illnesses. A fixed benefit health insurance plan can help cover the high costs of treatments these diseases incur.
Hiding Medical History
Insurers rely on the information provided by the insured at the time of policy purchase. The terms and conditions of the policy are based on this element of trust. To ensure that the policy is approved, or even for lower premiums, some people hide their medical conditions and lifestyle habits from the insurer. At the time of claim, insurers conduct an exhaustive check and this is when the truth will eventually come out. Needless to say, this leads to rejection of the claim and may even qualify you as a fraud.
Tax Saving Tool
Some people view health insurance policies as a tax saving measure. It is true that premiums paid towards insurance policies contribute to reduction in taxable income under Section 80D of the Income Tax Act. But, this should not be the reason for buying the policy. With a singular focus on saving taxes, the individual may buy an unsuitable policy or one that has insufficient coverage.
If you’re thinking of buying a health insurance plan, take a look at the benefits that Exide Life Sanjeevani has to offer. It offers comprehensive benefits at affordable rates. To learn more, you can visit our website here.