Health Insurance Myths and Facts that you Should Know

Looking at the growing number of infections and diseases we could fall prey to, buying a health insurance policy should be our top priority. However, there are many health insurance myths and facts that make people should know while making a purchase. Whether it is a health insurance myth or the various Mediclaim myths that are preventing you from enjoying the benefit of having a cover for emergencies, it is in your best interest to separate fact from fiction.

Since health insurance helps you get the needed treatment without putting a dent in your savings, here are important health insurance myths and facts to keep in mind.  

Health insurance myths and facts

• Health cover is just an investment to save taxes 

Looking at health insurance as a mere tax-saving instrument is not the right way to go about enjoying its benefits. Although it has a tax deduction benefit under Section 80D of the IT Act, it offers many other advantages. The primary need of a health insurance policy is to cover health expenses during medical emergencies or for planned healthcare needs. It acts as an investment to protect you and your family’s health and well-being.

• Medical insurance is only for senior citizens  

People often relate health insurance to critical illness cover and think it is only required when they age. However, this is a popular health insurance myth as even fit and young people can contract diseases like dengue and malaria. Even the healthiest of people can meet with unforeseen events like accidents and illnesses. Moreover, when you get health insurance when you are young, you usually pay lower premiums. This also helps you gain from the cumulative bonuses when you don’t claim insurance in a given year.

• Purchasing online health policy is not safe 

In an era where most services are available digitally, health insurance is no exception. You can safely buy insurance online by transacting through a secure payment gateway. Comparing health policies online is much easier and more convenient too. You may even get policies at cheaper premiums as there is no involvement of third parties or agents.

• Health insurance covers expenses from the day you sign up 

This is one of the common myths that policyholders often miss out on. Almost every health policy comes with a waiting period of 30 days [1] before it is activated to cover your medical expenses. Also, coverage of pre-existing diseases usually requires you to complete a waiting period of 2 to 4 years. However, this may vary with different insurance providers. Therefore, it is important to carefully scrutinize the terms and conditions of health policies and opt for the one at the right time.

• Group health insurance is good enough for everyone 

You may think that a group health insurance [2] provided by your employer is enough for you. However, such policies often come with a limit based on group claim ratio and may not necessarily cover all your needs or your family’s health. To add to the drawbacks, your employer’s group cover is only valid as long as you work in that organization. On the other hand, having a personal insurance policy provides a comprehensive cover. You can also cover your family’s health with family floater plans.

• Not disclosing pre-existing diseases can help 

Some policyholders try to conceal their pre-existing diseases and other health conditions while purchasing a policy. However, doing so can make you a victim of health insurance myths. The truth is, doing this may result in your claim getting rejected. On the other hand, disclosing your pre-existing ailments beforehand helps you get needed cover after the waiting period.

• More features and network hospitals mean a better policy 

Do not get fooled by the health insurance myth that a policy with more features is always a better policy. This is not true. Many features may actually result in a higher premium and may not be applicable to you. At the same time, a policy with a long list of network hospitals may not have a high claim settlement ratio. This refers to the amount of claims that are settled out of the total number of claims filed with an insurer during a financial year.

The best way to decide on which policy is the best for you is to see if its features work for you, if it offers cover for hospitalization, post- and pre-hospitalization expenses, daycare costs, as well as consultations, ambulance services, and more. Finally, check to see if the insurer has a high claim settlement ratio and an easy way to make claims.

Apart from these myths, you may be under the impression that a Mediclaim policy is the same as a health plan. This is one of the common Mediclaim myths that people fall for. However, it is important to keep in mind mediclaim and health insurance have some difference. AMediclaim covers only hospitalization expenses while health insurance offers comprehensive coverage.

Don’t let health insurance and Mediclaim myths keep you from getting the needed cover for medical treatment. Now that you understand them better, educate your loved ones about health policies and Mediclaim myths and truths. Take informed steps towards protecting your and your family’s health and well-being. Check out the individual and family floater health plans under Aarogya Care on Bajaj Finserv Health. All these plans come at affordable premiums with a bevy of benefits.