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Do's and Don'ts of Buying Health Insurance Policy

Team AckoMay 23, 2024

Taking care of your health and following a wellness-focused lifestyle are crucial. But despite you taking care of yourself, health issues can unexpectedly strike, and their impact can be significant on your physical, emotional, and financial well-being. While you can't always prevent health problems, you can prepare for potential expenses.

That's where health insurance plays a vital role. By having a comprehensive health plan that covers common illnesses, you can protect yourself financially and avoid the burden of high medical costs.

Buying a health insurance policy has become a necessity in today’s time. Our fast-paced living, lack of exercise due to a sedentary lifestyle, and poor nutrition can lead to a number of health issues. To combat this problem, along with improving physical health it is also necessary to be prepared financially.

Do’s

In this article, we will discuss the things that you should and should not do while buying a financial cover in the form of health insurance in case of medical emergencies. Read on to know more:

Contents

Do’s of Health Insurance
Don’ts of Health Insurance
Conclusion
Frequently Asked Questions

Do’s of Health Insurance

Understand your requirements: Many times, people buy a health insurance cover without actually knowing what they might or might not need. Buying a policy without knowing your requirements will either leave you under-insured or over insured. Both the situations will burn a hole in your pocket. Thus, buy a medical insurance policy that is suitable for your requirements. For example, buy individual health insurance if you do not have any dependants, go for a senior citizen plan for your retired parents, or buy a family floater policy if you have a spouse and children.

Due diligence: Buying a health insurance plan is like making a purchase for a product available in the market. Just like you would take a look at many models and the features while buying a television, you can do your research while buying a mediclaim policy. Researching about the types and features of the plan or the insurance company, that is offering the policy, will help you find the best-suited plan.

Buy Health Insurance Online: People have a tendency to call their insurance agent for buying almost any type of policy, they hardly make an effort to go online and buy health insurance. But remember that times are changing, insurers are opting for a customer-centric approach. The process of buying health insurance has become so easy that you can do it all by yourself without depending on an insurance agent.

Compare medical insurance: This is probably one of the best features of buying health insurance online, you can compare different health insurance plans side by side. You don’t have to do this manually. To compare health insurance policies, simply visit the website of any health insurance company or an aggregator and compare plans with the help of a simple comparison tool.

Read the Policy Document: The most important aspect of buying any kind of insurance is to read through the policy document. Agreed, a policy document is full of terms and conditions written in a technical language, but you need to be aware of the coverage, exclusions and also the conditions written in it. And if you don’t understand any part of the text, you can simply get in touch with your insurer, the customer care executives will be more than happy to help you.

Check the network hospitals: Cashless health insurance is crucial nowadays. It allows you to avoid paying out-of-pocket expenses during claims and eliminates the delay in reimbursements. Before purchasing insurance, verify that the provider offers cashless claims and check the network of hospitals where you can utilize this benefit to save time and stress.

Don’ts of Health Insurance

Don’t hide the status of your health: When you buy a health insurance plan, your insurer provides a financial cover in case of a medical emergency. If you hide the status of your health and make a claim for a situation that is not covered in the policy, your claim will get rejected. Never give false information or hide the status of your health while buying the policy.

Don’t avoid buying extra cover when required: With a health insurance policy, you should get an all-round coverage if a medical emergency strikes. To achieve this, you need to be sure that you purchase adequate cover. If you feel that your existing policy is not sufficient you should consider buying extra coverage. For example, a mediclaim policy provided by your employer may not be sufficient, in this case, strengthen the cover by opting for a separate health insurance coverage.

Don’t delay renewing your medical insurance policy: The duration of a health insurance policy is usually one year, beyond which you need to renew the policy. Remember that, you cannot file a claim if your policy has expired. Thus, to keep your financial safety net intact, renew your health insurance policy on time.

Don’t buy unless you understand the plan: Last but definitely not the least – do not buy a health insurance plan if you do not understand what it offers. It may not cover your requirements and leave you under insured. This is as good as not buying health insurance at all. Always seek help when in doubt.

Don’t think employee health insurance is enough: Many salaried individuals rely on employer-provided health insurance. But these plans may have limited benefits. Losing your job or retiring can leave you without coverage. To ensure comprehensive protection and financial stability, investing in a personal health insurance policy that provides a higher level of coverage and is not dependent on employment status is crucial.

Don’t choose a low premium to save money: Choosing a low health insurance premium without considering coverage is unwise. Low premiums often lead to limited coverage or a reduced sum insured. This can result in financial losses when claiming benefits. Instead, focus on selecting a premium that provides adequate coverage and a suitable sum insured fairly.

Conclusion

With many choices at your disposal, it is essential to be knowledgeable to select the appropriate health insurance policy for yourself and your loved ones. Health coverage has become a crucial investment in modern times. Effectively safeguarding your future and overall well-being through a superior health insurance scheme is achievable only by clearly understanding what to do and what not to do.

Frequently Asked Questions

Here are some FAQs related to Do's and Don'ts of Buying Health Insurance Policy

What will happen if I don’t buy health insurance in India?

Although there are no penalties for lacking health insurance, being uninsured can result in having to cover high medical expenses yourself or receiving poor treatment. However, health insurance guarantees you receive necessary medical care promptly without any financial strain.

What is the no-claim bonus in health insurance?

The no-claim bonus is given to the insured individual for each year without making a claim. It is given at the time of policy renewal and can be in the form of reduced premiums or increased coverage amount. The discounts or increased coverage can vary from 5% to 50%.

How can I find the right health insurance policy?

Nowadays, comparing different health insurance options on the internet is simple. Ensure the chosen plan offers adequate coverage and the sum insured suits your requirements. Additionally, check for a smooth claim procedure and a reasonable premium cost.

Does a health insurance policy cover dental treatment?

The majority of health insurance policies do not include coverage for dental procedures. It is advisable to confirm with your insurance company to see if they offer coverage for dental treatments.

What is the meaning of a daycare health insurance policy?

Daycare procedures refer to medical interventions that do not require the patient to stay in the hospital for more than 24 hours. These treatments can be completed within a short period of time, allowing individuals to undergo them as outpatients. Numerous insurance providers offer health coverage tailored specifically for daycare procedures.

Why should I buy health insurance at a young age?

Younger individuals are healthier due to their strong immune systems. Furthermore, younger age provides individuals with ample time to complete waiting periods for certain illnesses and coverage plans. As a result, younger individuals typically enjoy lower insurance premiums than older people.

Disclaimer: *Except for exclusions like maternity benefits, undisclosed diseases, etc. Please check policy wordings for more details.

**The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.