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It seems easy to purchase health insurance online—a few clicks, a fast
comparison, and you’re protected, right? Not always, that is. A lot of people
mess up when they pick a plan, only to find out later that it doesn’t cover what
they thought it would. From not seeing hidden rules to going for the cheapest
one without looking at what it offers, these errors can end up costing you a lot
in surprise doctor bills. But don’t stress, I’m here to help! In this blog, I’ll show
you the usual traps of buying health insurance online and how to skip them
like a pro. Whether it’s your first time or you’re changing plans, these hints will
help you pick wisely and avoid stress. Let’s jump in and get you the right
coverage!
1- Selecting the Most Affordable Policy Without Verifying Coverage:
The biggest error? Choosing the least expensive plan without really
understanding what it includes.
The Reason It’s an Issue:
A coverage for ₹3,000 could seem like a good deal, but what if it doesn’t cover
Major surgeries or intensive care unit costs? What’s the point, then?
What You Must Do Instead:
It is crucial to always verify what is and is not covered.
Seek out insurance that strikes a mix between benefits and affordability.
Use reliable websites such as PolicyGhar, PolicyBazaar, Coverfox, or the
official websites of the insurers to compare plans.
Pro-Tip: Don’t depend just on the gaudy advertising. The real narrative is
concealed in the “exclusions” section, so download the policy pamphlet and
Read it carefully.
2- Ignoring the Pre-Existing Disease Waiting Period:
Do you or your family members have sugar issues, high blood pressure, or thyroid
problems? If so, you must watch the wait time closely.
The Reason It’s an Issue:
Pre-existing condition waiting periods range from two to four years under
many insurance plans. This implies that your insurance will not pay for therapy if you
require it during this time.
What You Must Do Instead:
Look for plans with the shortest waiting periods if you already have health
issues.
For an additional price, some insurers provide a shorter waiting period; this
can be worthwhile.
Pro-Tip: If you’re moving from an employer’s plan to an individual one, ask
your insurer if they can shorten your waiting period depending on your prior
coverage. Some corporate health insurance policies waive the waiting period.
3- Failure to Verify the Hospital Network:
Think about having insurance, but no hospital nearby, lets you use it without
paying cash first. That would be very bad, right?
The Reason It’s an Issue:
You may have to pay upfront and then wait weeks or months for
reimbursement if your insurer has a small hospital network.
What You Must Do Instead:
See if the hospital you like is on the insurer’s list for no cash pay.
Large insurance firms such as HDFC Ergo, Max Bupa, and ICICI Lombard
often have more hospitals listed.
Pro-Tip: Select a policy with a robust countrywide hospital network if you
frequently travel to other places.
4- Neglecting the Co-Payment Clause:
You think, “This is ideal!” when you see an inexpensive policy. But hold on,
Have you looked at the co-payment clause?
The Reason It’s an Issue:
You must pay a portion of the amount out of pocket if there is a co-payment
condition. You will be responsible for paying ₹1 lakh if your hospital cost is ₹5
Lakh and your policy has a 20% co-payment. Aww!
What You Must Do Instead:
Steer clear of plans with large co-payment percentages unless you’re saving
a lot of money.
Co-payment conditions are common in senior citizen insurance, so carefully
Review them before selecting one.
Pro-Tip: To save needless out-of-pocket costs later, choose a zero co-payment
policy if you’re young and healthy.
5- Disregarding the Room Rent Cap:
The room rent cap is a cunning little element that most people overlook.
The Reason It’s an Issue:
A lot of policies cap room rent at ₹3,000 per day. You may be required to pay a
portion of the total hospital bill (not just the additional room price) if you
select a hospital room that costs ₹6,000 a day.
What You Must Do Instead:
Choose policies that have a high maximum or no cap on room rent.
Particularly if you value privacy, find out if the policy permits single private
rooms.
Pro-Tip: Although they are more expensive, certain premium policies allow you
to select any type of lodging. This can be a wise purchase if you have the funds.
6– Ignoring the Claim Settlement Ratio:
Will my insurance company really pay when I file a claim? This is the primary
worry people have.
The Reason It’s an Issue:
Some insurers reject a large number of claims, which is shown by their low
claim settlement ratio.
What You Must Do Instead:
Select insurers who have a high claim settlement ratio (ideally more than
95%).
Every year, IRDAI (Insurance Regulatory and Development Authority of
India) puts out this info. Look at it before you buy.
Pro-Tip: Big state-run insurers such as New India Assurance and Oriental
Insurance often has better rates for settling claims.
7- Not Including Family Members in Floater Plans:
Avoid purchasing separate plans when purchasing health insurance for your
family when a family floater may be more cost-effective.
The Reason It’s an Issue:
A family floater plan, which covers everyone under a single sum insured, might
It is less expensive than separate policies for each member of the family.
What You Must Do Instead:
A floater plan is a fantastic choice if your family is young and healthy.
Given that elderly parents’ healthcare expenses will be higher, take into
account a distinct senior citizen policy.
Pro-Tip: Some policies permit lifetime renewals, which is helpful as you
age.
FAQs:
- Can my sum insured be increased at a later time?
Yes, you can raise your coverage with the majority of insurers; however, there
may be a waiting period. Additionally, some policies offer no-claim bonus
benefits, which raise your total insured amount each year you avoid filing a claim.
- Should I get health insurance through an agent or online?
Due to the absence of agency commissions, online purchases are typically less
expensive. However, a competent agent can assist you if you’re lost and
require direction. Just be careful that they aren’t promoting a policy purely for
commission.
- Is it OK to exclusively use the health insurance provided by my employer?
No! Although corporate health insurance is fantastic, it expires when you leave
the organisation. To be safe, always obtain a personal health insurance policy.