Health insurance is one of the most important kinds of insurance that one can have. Unlike life insurance, which covers your family’s life after your untimely death, health insurance helps you in the day-to-day. It is the base for a healthy life, both in terms of your own health and the financial health of your savings. Without it, the medical bills that you might rack up could deplete your savings, thereby severely affecting the quality of life for you and your family. Having said that, there are certain mistakes that people often make when opting for a certain insurer’s policy. These mistakes could prove disastrous later down the road, hence, it is important to be aware of them. With that established, here are some of the most common mistakes that should be avoided when purchasing or renewing your health insurance policy.
1) Not Getting Sufficient Coverage from the Start
When buying something you often decide based on how much it costs. That is the primary basis for most, if not, all purchases. The same applies to health insurance policies. People often decide to go for one that has a more economical premium. This could end up costing you dearly later. The way an insurance policy works is, the more you pay for premiums, the higher the returns. Choosing one, just on the basis of it being more affordable, may not give you the returns you were hoping for. In an emergency medical situation, this might not even cover a significant portion of your hospital bills.
2) Over-looking the Fine Print
Much like reading the manual for your new TV or Fridge, we often overlook the policy’s finer details. These details are crucial in understanding when and where your policy is applicable. This helps you plan better for the future or for any unprecedented accidents that might happen. This will also tell you if the policy in question is worth buying in the first place. While knowing the applicability is important, one could argue that knowing when it is not applicable is more so.
3) Missing the Co-Pay Clause
Similar to the above-mentioned point, this comes within the territory of reading and understanding your policy before purchase. The co-pay clause essentially outlines the terms in the event of a payout being initiated by the insured. The Insured person is expected to cover a certain portion of the bills and the insurance agency will cover the other remainder. This split could be a 50-50 split or you could be paying 40 per cent and the insurer might pay the other 60 per cent. That all depends on the type of policy. Keep in mind that policies with the co-play clause tend to have lower premiums, so think twice before going for the affordable policy.
4) Hiding Relevant Medical History
Health insurance policy buyers often tend to hide their medical history out of fear that the policy application might get rejected or that they might have to pay higher premiums. Doing this could defeat the purpose of getting the policy in the first place, as it may not end up covering the medical condition when the time comes. There is also the issue of facing charges of insurance fraud. Neither outcome is good for your health.
5) Relying on The Employers Health Insurance or Rely on a Single Insurer
Having health insurance as part of your work benefits is a good thing, but at the same time, if you decide to leave the job in the future, you will lose that policy. Similarly, when you do not consider other health insurance policies and fixate on one, you may not get the best deal when it comes to coverage. It is always good to explore your options.