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With a plethora of options available, a lot of research needs to go in when you wish to buy health insurance plans in India. There are some basics about health insurance that you must understand, which would further help you in getting a health insurance plan that is completely in line with your healthcare needs. To help you make a well-informed judgment, we have listed below 10 Do’s and Don'ts to help you through the overall buying journey.
So, all set to buy a health insurance plan? Make sure you don’t repeat these mistakes.
Mistake to Avoid while Buying Health Insurance
Be careful about these mistakes to avoid buying a wrong policy. Here you go:
1. Don’t Buy a Health Insurance Plan Just Because It is Cheap
Buying a cheaper health insurance plan can be quite tempting, however, a low premium often implies restricted coverage. Saving some money today in order to cut down the premium may turn out to be quite expensive in the long run.
Tip
Yes, the premium is important, but you need to opt for the most cost-effective plan against the benefits offered, not just the one with the least premium. Do your research well.
2. Don’t Just Depend On Your Employer’s Health Insurance Plan
A corporate health insurance plan is a great incentive that is offered to you by your employer. However, you need to keep in mind that such plans offer rather low coverage, and the sum insured might not be enough especially if you have dependants. Also, the policy ceases the moment you leave the organisation.
Tip
Even if you have employer’s/ group health insurance, make sure to invest in a separate health insurance policy. or If you already have one, opt for a top-up or a super top-up policy to enhance your overall coverage.
>> Also Read: Mistakes to Avoid When Buying Health Insurance
3. Don’t Hide Any Relevant Information from the Insurer
It is strictly NO to hide important information from your insurer for example-about a pre-existing medical condition, prolonged habit etc. Any incorrect or incomplete information can cause a rejection of the claim or/ and put you in legal trouble.
Do you remember the first principle of insurance, “Utmost Good Faith”?
It means you need to declare every relevant information to your insurer at the time of policy inception and claim so that there is no scope for non-disclosure or misrepresentation of any material fact which could lead to a rejection of the claim.
Tip
Don’t fudge/ hide any document at the time of submission just for a quick issuance as it would be a concern at the time of claim.
4. Don’t Miss the Due Dates
While buying health insurance is important, renewing it timely is crucial. Most health insurance policies come with 1-year tenure, and once the policy expires, you would not be able to raise a claim. Make sure to set up reminders for timely renewal so that your policy doesn’t lapse and you do not miss out on the advantages of the policy.
Tip
If you find annual renewal to be a hassle, you can opt for multi-year policies where you can get coverage for 2 or maybe 3 years. You might also be able to get some discounts when you opt for a long-term plan. Alternatively, you could register for an auto-debit from your bank account/ debit or credit card so that there is no lapse even if you are not available at that point in time to make the payment.
Now that you are aware of the mistakes to avoid while buying the best health insurance policy in India, let’s consider the DO’s to ensure a perfect deal. Here you go:
Do’s of Buying the Right Health Insurance Policy
Ensure to follow these tips to get an adequate coverage at a pocket-friendly price:
1. Do Opt for High Coverage
With India’s medical inflation at a whopping 14%, opting for a high-sum insured health insurance policy is crucial. A health plan with a sum insured of INR 5 lakhs may not be sufficient, especially if you have a family to look after. Even if you want to increase the existing health insurance coverage, you’re most welcome to do so. You can always buy a health insurance plan with riders/ add-ons or go for top-up or super top-up plans to maximize policy coverage.
Tip
The thumb rule for deciding the health insurance coverage is that the sum insured should be at least 50% of your annual income, or 6 times your monthly income or at least offers coverage for common illnesses.
2. Do Your Own Research
If you are looking for the best health insurance policy in India, remember that the best plan is one that fits in your requirements. Hence, before looking for health insurance, analyse your requirements first, understand what type of health insurance you need, what factors would affect your premium, your current age and medical condition etc.
Tip
Each person has a completely different requirement and hence there is a wide variety of plans available in the industry to cater to each and every person’s needs. This approach will help you select the plan that suits you.
3. Do Read the Policy Document Carefully
No matter how tedious it may sound, reading policy papers is vital. You need to be clear about the inclusions and exclusions so that you are not up for a surprise at the time of claim. While a number of things and concepts might be easy to understand, do make sure you understand all the intricacies of the plan.
Tip
Do fill out your own form yourself, so that you get to read, understand and declare all correct information. Do go through all clauses of the plan, such as pre-existing diseases, co-payment, sub-limit, waiting period, deductible, etc. You may take help from a company executive in case you come across certain terms that are beyond your understanding.
4. Do Check the List of Network Hospitals
Health insurance providers have a long list of hospitals and healthcare centres in their network. While a bigger number is a plus, you need to check if your most preferred hospital is listed for availing cashless hospitalisation. Easy accessibility to such hospitals ensures quick medical attention.
Tip
Have a detailed look on the list and ensure at least two or more hospitals are in your vicinity. You can also go for the insurer that provides maximum hospital options.
5. Do Opt for a Pre-Policy Health Check If Needed
A pre-policy health check-up is a medical screening/ examination which includes a number of tests and investigations. Such tests may or may not be mandatory and generally are conducted keeping in mind the applicant’s general fitness and health.
Tip
Clearing all the tests can significantly reduce the chances of a claim rejection as the risk is accepted by the insurer and it can also fetch you additional benefits.
To Conclude
A health insurance plan is nothing short of a wise investment. Being well-informed about the policy would help you in having the right expectations. Make sure you understand the policy that you wish to opt for. Having said that keeping these do’s and don’ts in your mind will definitely help you make a sincere decision.
Disclaimer: The above information is for reference purposes only: Policy Assurance and Claims at the underwriter's discretion.
