Health insurance is one of the most vital investments that you can make. Yet, there are so many misconceptions around this financial product. By properly understanding exactly what your health insurance policy offers (and when), you can make smarter investment decisions when it comes to selecting the same from a group of options.
Here are some things that many people often get wrong about health insurance policies:
1. You don’t need it if you’re still young
Many people believe that health insurance, though essential, is an investment that comes in handy when you’re older. However, nothing could be further from the truth. The ideal time to invest in this financial product is when you are young and healthy. If you do so, and renew your policy on a regular basis, you are more likely to have a better claim experience than people who’ve invested later in life.
2. Your benefits start the minute you invest
Your health insurance policy benefits do not necessarily begin the minute you invest in them. Most policies have waiting periods and this time depends on the policy itself. More often than not, the waiting period is at least a month. Therefore, if you fall sick within the waiting period, you are not liable to receive any coverage. Furthermore, many policies also have certain waiting periods before certain diseases are covered and you must review the same very carefully before investing.
3. The lower the premium, the better!
This is perhaps the worst misconception you can make when it comes to any investment, especially health insurance. People believe that paying lower premiums is often better, and policies that offer the lowest premiums in the market are the best. However, this is not the case. More often than not, these policies can only offer you restricted benefits, which is why they have such low premiums. Without certain crucial benefits, you may have well as not invested in health insurance at all!
4. Having group health insurance is good enough
It is not uncommon for families to invest in a group health insurance policy. Similarly, many people also rely on the group health policies that are offered by their employers. While these may seem good on paper, they can be restrictive in their offerings and pose a problem when you switch jobs. Having your own policy in such cases is often better.
5. You cannot claim expenses related to pregnancy
This is a rather random myth that has been circulating in India for years now. Many people tend to believe that if you are pregnant, insurers will not cover the pregnancy as it is a sure-shot claim. However, this is not true. Many insurance policies cover pregnancies as well as maternity conditions as well, as long as they are subject to certain conditions that are pertinent to the policy. There are some policies that will only cover your first pregnancy while there are others that require the policy holder to go through a three year waiting period between each pregnancy. So, it all boils down to the policy that you are considering. Make sure that when you are insuring any female members of your family, these conditions are well understood.
6. The best policies have lots of day care procedures
Many believe tend to believe that the best health insurance policy is one that covers as many day care procedures as possible. However, this is not true because when it comes to such policies, there are higher chances of your claims getting rejected. This is because these policies specify minute details that may or may not apply to you at all. Thus, it’s better to opt for policies that cover generalized treatments as opposed to specific ones.