Buying an insurance policy is not an easy task. With health insurance becoming more popular every passing day, the statement holds truer than ever. When buying a health policy, many folks do not do their homework. After all, certain priorities rank higher in their list than what is in front of them. Today, we talk about the five major health insurance buying mistakes people commit. Please do not commit these mistakes when you are buying health insurance.
Health Insurance Buying Mistakes
First mistake among the major health insurance buying mistakes to avoid is this. Do not buy a health policy based purely on a friend or relative’s recommendation. Why, you ask? Well, what you will be looking for in a health policy is going to be different. Even if it is not, your priorities and household budgets will be different. Hence, the health policy you buy should meet as many of your needs as possible. This cannot happen if you are going to buy health policy based on a recommendation alone. In essence, don’t just avoid this mistake but do some due diligence about various products available in the market.
Purchase for certain benefits
Many people buy health policy for benefits such as tax savings. However, if that is your sole target, do not buy a health policy. Ask yourself what is the need to buy a health policy? Is it not to save yourself from medical emergencies? If all you care about is saving tax, there are number of investments options you can try. National Savings Certificates and Public Provident Fund are among those options. Do not waste your money on health policy just to save tax.
Focus on certain aspects
People tend to focus on certain aspects only when they buy a health policy. These aspects include premium, deductible, types of covers, etc. Please do not commit this mistake. You buy a health policy for more benefits than just less premium or more covers. You buy it to ensure that your insurer shares your medical expenses. In essence, you try to not let your medical expenses blow your household budget to bits. To ensure that, this is one of the most crucial health insurance buying mistakes you should avoid.
When we talk about payment, we talk about co-pay. Co-pay is the amount the insured has to pay from his/her pocket. Now, you will say how does that matter. To this we will say that co-pay terms are not fixed across products. So, in some cases, the co-payment amount is a fixed charge. In other cases, co-payment becomes a contextual issue, say if you are getting treated in a non-network hospital. But to avoid co-payment do not just opt for a policy with a high premium. Evaluate your options and check whether the co-pay amount is the kind you cannot afford. Also, do read the fine print of the policy carefully in this regard.
Now, before you look at it and bash us in comments, allow us to explain. Fact concealment is many times a decision most policyholders are unaware of. This is because they do not bother to ask important questions. One of those questions is regarding the medical history. If the insurance agent asks you for your medical history, do ask about the duration under consideration. It is questions like these that will save you from any trouble in future when it comes to making claims.
Buying health insurance is a good idea. However, always remember about asking as many questions about a policy as possible. If there is even the slightest of doubts in your mind about a policy, do not sign on the dotted line. It will save you from not just a future trouble but also from a potential impulse decision.