It’s no news that health insurance is the best way to handle medical bills and avoid a dent in your savings. Consequently, more and more people are becoming aware of the importance of a health insurance policy. Luckily, we are now living amongst the generation that is beginning to realize that health insurance is not an expense but an investment for a healthy physical and financial life.
However, even though more and more people are getting aware, there still remain some myths about health insurance policies. These myths need to be busted as they can cause last-minute surprises only to affect the policyholder or the insured for the worse.
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Sat 14 Dec. 2024
Today, we will be bursting some of these myths about a health insurance policy:
- You Don’t Need a Health Insurance if You are Young:
Most people buy health insurance in their late 30s or their early 40s, thinking it is the right age to buy it. Although it is true that the young are less susceptible to illnesses than middle-aged individuals, it doesn’t change the fact that the young still suffer from health issues that demand medical attention.
Taking the worst possible scenario under consideration here: God forbid, if you are young and diagnosed with a critical illness or health issue, a health insurance policy can come to your rescue financially. Not to forget, when you get the best treatment, you have more chances of a speedy recovery.
Even if you do not, you can use health insurance to pay your medical bills. As the cost of medicines and doctor prescriptions are rising, health insurance can pay for them and help you save money.
In addition, it’s always better to buy a health insurance policy when you are young. The premium is less, and you have the option to renew it and increase the coverage from time to time.
- You Can Enjoy the Policy Benefits from Day 1:
Much to the surprise of many, you cannot file health insurance claims on the commencement of the policy. A waiting period of 30 days applies. This means you cannot make any claims, except for accidents, before 30 days. In addition, a waiting period of 12-48 months also applies in case of pre-existing diseases. Pre-existing diseases refer to the medical conditions that were diagnosed before the health insurance policy was purchased. The waiting period varies according to the health insurance company. Ensure that you are aware of it before proceeding with the purchase.
- A Health Insurance Policy Covers Cosmetic and Dental Procedures:
Health insurance does not cover dental and cosmetic procedures. They are included in the policy’s list of exclusions. The policy only covers accidents, medical emergencies and issues that usually demand urgency. As cosmetic and dental treatments are not necessary but a matter of choice and aesthetics, health insurance companies do not cover them.
- You Will Lose all the Benefits Upon the Expiry Date:
A health insurance policy must be renewed every year. However, most people believe that failing to do so on maturity would exhaust the benefits applicable under their policy.
In reality, a policyholder is given a grace period of 15 days, during which they can renew their health insurance policy to retain the policy. It is after this window is closed; your policy benefits can be terminated.
- A Health Insurance Policy Covers your Full Medical Bills:
A health insurance policy features a co-payment and sub-limit clause that puts caps on the amount of coverage you can avail.
A co-payment clause, for instance, sets a proportion of payment between the policyholder and the health insurance company. A health insurance company can offer to settle 90% of the medical bill, while the rest needs to be paid by the policyholder. This ratio is just an example; it differs from insurer to insurer.
A sub-limit clause, on the other hand, puts a cap on certain medical procedures. For instance, a health insurance policy may conclude the policyholder cannot claim more than 50% of the coverage on a knee-replacement surgery.
These caps are in place to ensure optimum utilization of health insurance coverage in the time of need. Ensure you are aware of these clauses and percentages before you go ahead and purchase the health insurance policy.
- A Health Insurance Policy Needs to be Bought Offline:
We are living in an era where you can buy anything online, even health insurance. However, most individuals feel that it might not be a sagacious decision. However, it is only a matter of viewpoint.
If you are worried about safety, then you must know that buying a health insurance policy online is completely safe. However, you need to ensure that you are buying your policy from reliable health insurance companies and are reading the policy document carefully.
Bottom Line:
The best way to avoid last-minute surprises is to be completely aware. Now that these myths are busted, you will become a smart customer when you are buying a health insurance policy. If your idea is to create a strong financial kit, be sure to add a life insurance policy (Know what is life insurance here) with a health insurance policy. Secure your present and future now with these insurance products.
