Health insurance in today’s day and age is an absolute necessity. With the rise in the number ailments and instances of lifestyle-related diseases, it has become critical to have one. Living without one is like throwing caution to the wind. As crucial it is to purchase health insurance cover, it is one of the grossly misunderstood financial products. Especially with the various jargons used in the policy documents, it makes even more confusing even for first timers and even for experienced individuals. This article compiles five such myths and the realities surrounding health insurance plans. Let’s have a look –
#1 Young and healthy do not need insurance
The myth is quite popular among young individuals whereas the reality is health insurance is best bought when you are young and healthy. As the popular saying goes, do not put-off things to the eleventh hour, similarly, you should not wait till a medical emergency arises to avail health insurance coverage. Planning well in advance helps you stay prepared for such unprecedented and uncertain times. Moreover, buying health insurance early in life has advantages of cheaper premiums. Also, the mandatory requirement of waiting period for specific illnesses as well as pre-existing health conditions can be fulfilled without having to worry about medical coverage when the time comes.
#2 A cheaper policy is the better one
The most prevalent myth is the cheaper the better. While majority people base their purchase decision solely on the premium, you must remember that with lower premiums come a lot of restrictions in your health insurance policy. Be it an individual policy or a family health insurance cover, the limitations to a cheaper insurance plan limit many policy features. So, make sure to purchase a policy that is not just affordable, but also has the required coverage based on your needs.
#3 Smokers cannot avail health insurance coverage
Another popular myth around health insurance is for people who smoke. But the reality is far from truth. Health insurance companies offer insurance plans for smokers and there is no restriction in its coverage. The only caveat is the premiums are loaded with additional amount to mitigate the risk associated with smoking by the insurance company.
#4 Delayed renewal voids all policy benefits
The reality about this myth is surprising. It is recommended to renew the insurance plan before its expiry. This allows continuous policy benefits without any break in the coverage. Also, there is no gap between two insurance contracts if renewed beforehand. But for whatever reason if you happen to renew it within 30 days after the end of the policy tenure, the renewal benefits can be carried forward. This duration may differ among insurance providers and is recommended for you to check well in advance with your insurer.
#5 Mandatory requirement of 24-hour hospitalisation to claim insurance
Not all treatments today require mandatory admission to a medical facility for more than 24 hours. Some procedures can be completed within a couple of hours. These treatments are known as day-care procedures and majority insurance policies have such features. Best to refer to the policy wordings or have a word with your insurer to know about coverage for these procedures.
These are some of the myths that are widespread among new buyers. Make sure to not fall prey to these myths and purchase a health insurance plan, be it critical illness insurance, family floater plan or even individual coverage as per need. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.