8 Common Mistakes to Avoid While Buying Health Insurance in 2021

As the number of diseases is tremendously rising, health insurance is no less than a backbone of worry-free life.  It gives you mental peace and power to fight unexpected diseases, as one need not worry about arranging finances for the treatment or surgery. Also, in some cases, it is important to admit the patient immediately to the hospital, and if you delay the same due to the unavailability of funds, it might lead to further medical complications. Therefore, it is important to buy a health insurance plan, irrespective of your stage of life.

As an insurance buyer, you might overlook a few important factors and end up buying an inappropriate health insurance plan. Therefore, we’ve put together a few common mistakes which people usually commit while buying an appropriate and best health insurance plan. Get all your answers from helpful info center.

Mistakes People Should Avoid While Buying A Health Insurance Plan

1.Purchasing Insufficient Cover/Under-insuring Yourself

As it is difficult to anticipate what medical complications you might face in the future, it is also challenging to decide an adequate coverage for yourself. Sometimes, people opt for an insurance plan with a lower premium to save money and pass over the extent of coverage they will get in return. However, it is important to maintain a balance between coverage and the premium amount to save yourself from the consequences of insufficient cover.

2. Excessive Riders

Unknowingly, people might purchase riders more than required, which might increase your premium payment unreasonably. Therefore, it is important to research about the riders and purchase the appropriate ones.

3. Opting for Shorter Terms

If you choose to buy insurance for a shorter term, you might not be able to reap the benefits in the long run when you might actually need it. Also, opting for the long term divides the cost over a longer term, which helps you opt for a higher sum assured.

4. Buying Insurance Just to Save Tax

Undoubtedly, buying insurance helps you save taxes, but if you buy insurance just to save your taxes, that might not be the best decision. By setting tax saving as your goal, you might prioritise saving maximum taxes while ignoring other important aspects, such as choosing adequate coverage, credible insurance provider, etc.

5. Hiding Your Medical History

If you hide your medical history while applying for health insurance, everything might go smooth initially. But, if, unfortunately, you fall sick in the future and apply for the claim, the insurer will cross-check all your information before disbursing the claim. And, if they find something misrepresented, it might reject your claim. Therefore, it is advisable to disclose everything during your application.

6. Buying Insurance Without Comparing

While you might find the benefits provided by the first insurance company you come across to be lucrative, it is important to compare the quotes provided by different companies. Sometimes, a few companies offer special discounts or benefits,  flexible terms and conditions, etc.

7. Relying on Company’s Cover

Usually, companies provide health insurance cover to their employees and pay the premium on their behalf. But, the cover might not be adequate; therefore, it is advisable to buy another health insurance plan, like, top-up plans along with your company’s health insurance plan to have wider coverage.

8. Choosing Higher Deductibles

Usually, the premium is lower when deductibles are high and vice versa. Therefore, it is important to decide the amount for both of them after making certain evaluations. If you choose higher deductibles to leverage the benefit of paying a lower premium, you might have to arrange for a higher amount on an urgent basis if you have a medical emergency in the future. Therefore, it is better to choose the amount of the deductibles appropriately.

While keeping in mind the factors mentioned above, you can opt for a health insurance plan with appropriate coverage and save yourself from committing mistakes. However, before you make your final decision, it is best to ensure that you choose a credible insurance provider like TATA AIG to enjoy the benefits of favourable terms and conditions, speedy claim settlement and excellent customer support services.

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