01 October, 2015
As healthcare costs continue to rise at an alarming rate, every person needs a financial safeguard to protect himself from the unexpected medical expenses. A health insurance plan provides the necessary financial cushioning to save you from the burden of medical expenses incurred due to unforeseen circumstances such as injuries due to accidents, illnesses, and medical conditions.
Knowing and choosing an appropriate health insurance plan that best fits your requirements is not an easy task, and often people tend to choose a plan which costs the least. However, this tendency can often leave you with inadequate cover, thereby rendering the policy insufficient to pay off the medical costs. To avoid such scenario, we have listed five common mistakes, which you as a health insurance buyer, should avoid:
1.Buying Health Insurance Only For Tax Saving
Under the Section 80D of the Income Tax Act of India, deductions done up to Rs. 25,000 towards health insurance premium are known to qualify for tax benefits. While tax benefits are attractive, individuals should not buy health insurance policy for that reason only. Before buying the plan, you should take a look at the policy covers and benefits.
2.Not Shopping Around
Buyers often stick to health insurance plan recommended by their friends, colleagues, or family, without taking the efforts to compare the different policies. Comparison of policies helps in selecting the right plan at a cheaper price.
3.Comparing only the Premiums
While premium is the basic factor for comparing different health insurance policies, it should not be the only evaluating factor. Buyers should compare additional covers, benefits, exclusions, and sub-limits before narrowing down on a policy.
4.Opting only for a basic cover
Comprehensive health insurance plans such as Royal Sundaram Lifeline health insurance provide several benefits apart from the basic hospitalization cover. For a small amount, you can avail additional benefits such as cashless hospitalization, Ambulance cover, and day-care cover. So why stick to basic protection when a complete plan is available by shelling a few extra pennies?
5.Not Reading the Fine Print
Most of the insurance buyers often avoid dwelling into the fine print of the policy. Knowing the coverages, exclusions, limit for each cover, and benefits is important because you are aware of the extent of protection you have availed.