Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement.
‘To err is human and to forgive divine’ is a very common saying. Yes, we are humans and we tend to make mistakes. A simple lack of knowledge or an unintentional action causes an error and then it is up to us to find a fix. Being aware of the mistakes that we subconsciously make can be the first step in avoiding them.
Even when we buy a health insurance plan, we make certain typical errors due to the technical nature of the plan and our lack of knowhow. A health insurance plan involves various technical details and demands a thorough understanding. Most of the times we feel that we have understood the concept and are confident in making the right choice while buying health insurance, there is where simple errors take place.
When we spend our hard-earned money in buying health plan, it is important to check that it is utilized in buying the right and the best health insurance plan. Difficult as it may sound, enlightening oneself with the cause of these mistakes and rectifying it is not a hard task. Identifying those key errors is all it takes to land the best health insurance plan.
Do you know what these common errors are that people commit while buying a health insurance plan? No? Let’s discuss.
Buying what the friend/relative bought – The most erroneous decision is to buy what others have bought. Does one size fit all? If not then how can one plan suit all? If that would have been the case there would have been just one plan in the market today. Your needs and requirements are different from the requirements of your friend/relative. You should buy a plan which would provide coverage suitable to your family and lifestyle rather than blindly following the choices that others made.
I don’t need health plan when I am young or healthy – The youth think that no ailment would touch them because age is on their side. Well, they couldn’t be more wrong. The data published by the WHO states that the younger generation is becoming increasingly prone to lifestyle ailments given the modern lifestyle choices they make. So buying health insurance when you are young should not be dispensed with. On the contrary, buying young makes more sense as you can enjoy a more comprehensive coverage and that too at a lower premium.
Buying a lower coverage – Those of us who are even aware of the importance of health insurance get trapped in the mistake of opting for a lower coverage. A lower coverage is as good as no coverage. In any emergency, the plan would not be sufficient to meet the claim and the effectiveness of a health plan would be lost. An optimum coverage is needed if you want to actually want to reap the benefits of your health plan. If you are worried about the premium incidence, buy a top-up or a super-top-up plan to enhance your coverage but ensure that the level of coverage chosen is optimum.
Excluding parents from coverage – We often tend to ignore our parents while buying a health plan for us. Your parents require a health plan too especially since they are at higher risk of medical contingencies. Covering them would be wise as they would need medical aid frequently. Buying a family floater health plan would be the ideal choice and including the parents in the coverage would be the correct decision.
Comparing premiums rather than plans – Every health plan has a different premium and basing the buying choice only on the plan with the lowest premium is foolish. Low premiums also limit the coverage extended. So, when buying a plan, compare the coverage options available choosing the one which has the features which suit your requirement.
Trusting the agent blindly –The agent does help you in completing the formalities associated with buying the plan and also at the time of claim. However, the agent represents only one company and might not have the plan completely suitable to your needs. Moreover, there is also a matter of limited choice when buying through the agent. A broker, on the other hand, is in a better position to offer you better plan options so that you settle on the one which is the best for your needs and even on your pocket.
So you thought you didn’t commit any mistakes when buying a health plan, didn’t you? Well, though not deliberate, mistakes tend to happen. But now you are forewarned and forewarned is forearmed. So protect yourself from committing these afore-mentioned mistakes and for sure you will end up having the most suitable plan for yourself.