Buying health insurance is crucial, but many people make costly mistakes that reduce the benefits or lead to denied claims. Understanding these pitfalls can help you choose the right policy and safeguard your health and finances.
1. Choosing the Wrong Sum Insured
Mistake: Picking a low coverage plan to save on premiums.
Risk: Inadequate coverage during medical emergencies leads to out-of-pocket expenses.
Tip: Assess your family size, medical history, and potential hospital costs before deciding.
2. Ignoring Pre-Existing Condition Clauses
Mistake: Not checking waiting periods or exclusions for pre-existing diseases.
Risk: Claims may be denied if the condition isn’t covered.
Tip: Review pre-existing disease clauses and select a policy with reasonable waiting periods.
3. Overlooking Add-On Benefits
Mistake: Focusing only on hospitalization coverage.
Risk: You miss benefits like critical illness coverage, maternity, OPD, or wellness perks.
Tip: Compare add-ons and riders to maximize protection.
4. Not Checking the Insurer’s Claim Settlement Ratio
Mistake: Choosing an insurer only based on low premiums.
Risk: A low claim settlement ratio may lead to delays or rejections.
Tip: Check the claim settlement ratio and read customer reviews before finalizing.
5. Ignoring Policy Renewal and Continuity Benefits
Mistake: Not considering long-term renewal and automatic coverage.
Risk: Gaps in coverage or increased premiums over time.
Tip: Ensure lifetime renewability and no age restrictions for renewal.
How to Avoid These Mistakes
Use comparison platforms like Vizzve Finance to evaluate multiple policies.
Understand your coverage needs and family health profile.
Read the fine print carefully, including exclusions, waiting periods, and claim rules.
Keep digital tools or apps handy for managing policies, reminders, and claims.
Conclusion
Avoiding these common mistakes ensures that your health insurance plan truly protects you when you need it most. A well-chosen plan saves money, provides comprehensive coverage, and gives peace of mind during medical emergencies.
FAQs
Q1. How do I choose the right sum insured?
Consider hospital costs in your city, family size, and medical history. Factor in inflation for future expenses.
Q2. What are add-on benefits in health insurance?
Additional coverages like critical illness, maternity, outpatient expenses, or wellness programs.
Q3. Why is claim settlement ratio important?
It indicates how reliably and quickly an insurer settles claims. Higher ratios mean faster approvals.
Q4. Can I switch policies if I made a mistake?
Yes, but ensure continuity of coverage to avoid gaps and waiting periods.
Q5. How can digital platforms help?
They allow you to compare policies, track premiums, and manage claims conveniently.
Published on : 31st August
Published by : SMITA
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