Thursday, 27 December 2018

Top 7 Common Health Insurance Myths

Posted by RaviKumar Nama
(Published on 28-Dec-2018)
Even though having health coverage is crucial, a large percentage of the Indian population still does not have such insurance. One reason is that many people do not completely understand the importance of health coverage. 

Here Are Top 7 Common Myths Related to Health Coverage:

1. Coverage is not necessary if you are young and healthy

This is a very common myth but is very far from reality. Life is uncertain and you may never predict what may happen tomorrow. You may be healthy today but a sudden illness may strike you in the future. Treatment costs are constantly escalating and if you do not have health coverage, you may find it financially difficult to meet these expenses.

Moreover, when you are younger and have no medical conditions, the premium on health insurance is lower, making the coverage more affordable. This is because insurance companies pose you as low risk and provide a lower premium.

2. Group insurance provided by your employer is adequate

Several employers offer group insurance coverage as an additional benefit to their employees. However, a large number of people are covered under a group plan, which limits the coverage available to every individual. Moreover, there are several terms and conditions, and exclusions and limits under a group plan, which may not meet your specific requirements.

The group coverage is available only when you are employed. If you lose your job or quit, the coverage is no longer available. Therefore, it is important you procure individual coverage along with group coverage to meet any future requirements.

3. Benefits are available from the date of purchase

Another myth about medical insurance is that the benefits under the plan are available from the date of purchase. However, the fact is that every plan has a certain waiting period (in most cases 30 days) during which coverage is not available. You may even cancel the policy during this period.

Additionally, pre-existing conditions are not covered for a pre-determined period, which may be up to four years. Some conditions may not be covered for a shorter period. It is important you read the terms and conditions to ensure you are not surprised in the future.

4. Coverage is required only if you are earning

Historically, only the breadwinners were considered as important contributors in a family. However, every member of your family plays a crucial role in the overall health and happiness of your home. If one of your non-earning members suffers from an illness and does not have coverage, the financial burden of their treatment will fall on you. This may have severe outcomes and may cause a liquidity crisis. Therefore, it is crucial that every member of your family is covered under a health plan.

5. Health insurance reimburses all expenses

This is another common myth that a health plan reimburses all your medical expenses in case of an illness. However, expenses are reimbursed only if you are hospitalized and even these may come with certain sub-limits. Some insurers may have sub-limits on the hospital room expenses while others may have such limitations on medication costs, which vary from one policy to another.

6. Health insurance is complex

When you apply for a health plan, the insurance companies follow stringent rules before accepting your application to prevent malpractices. However, the procedure is not complex and it is recommended you provide legitimate information to ensure your claim in the future is not rejected due to misrepresentation.

7. Buying online insurance is not safe

Digital technology has revolutionized the insurance industry with companies moving from cumbersome paper trail to online platform. Buying health insurance plans online is more prudent than through an agent. This is because the administrative costs for online policies are lower and these are passed on to you through a reduction in the premium costs.

Insurance companies also tie up with Third-Party Administrators (TPAs) to offer cashless services. Mobile applications allow you to buy, renew, and manage your policy online without any hassles.

Conclusion:

Health coverage is important, and if you still are not covered, do not wait any longer. Apply for one today and enjoy peace of mind.

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