Health insurance can be difficult to understand.
Not only is there an ocean of information and products, but there are also numerous myths and misconceptions floating around. So, don’t let false beliefs prevent you from getting the financial protection you need. To help you understand the ins and outs of health insurance, below are the 5 myths busted!
Insurance is not required for young and healthy
‘The chance of something happening to me is low, also, I have no dependents, so I don’t need health insurance’ is something that we listen from most of our clients for not having insurance. Do you relate to them? This is the biggest myth of health insurance. You have nothing to lose by getting Health Insurance at a young age. In fact, when it comes to insurance premiums, young and healthy = cheaper premium. In other words, you save lots of money! Insurance can be expensive if you have existing health issues, or if you are older. For instance, as you get older - there is a chance to get chronic diseases - because of this you might face difficulty to opt for health insurance or might have to pay higher premiums - therefore to avoid this it is better to have health insurance when you are young and fit.
Benefits of health insurance start from Day 1
All health insurance plans come with an initial waiting period of one month, during which you cannot make any claim. At least 30 days waiting period is required - However, some policies cover accidental hospitalisation from Day 1. Basically, you cannot get diagnosed with something and then get health insurance. However, when you renew your existing health insurance plan - there is no waiting period. There is an additional waiting period of up to 2-4 years for pre-existing diseases. It is advisable to read the policy wording and compare different health insurance policies to decide whether or not the policy is suitable for you.
Employer-contributed health insurance will suffice
“I have a corporate plan for me and my family, I don’t need individual insurance” - do you think the same? No doubt, organisations provide you with corporate health insurance - the best one at times, but it doesn’t mean you should underestimate the importance of personal health coverage. If truth be told, mostly corporate insurance tends to be one-size-fits-all, which is typically not suitable for your specific needs. Also, your corporate policy is valid only till you are an employee of the organisation - once you quit the job, you will no longer be covered under the policy. Furthermore, buying individual health insurance coverage in the later stage of life would be expensive and might not be available for you if you have severe health conditions. This is why having your own insurance plan is critical to prevent any gaps in your coverage for the long term. If cost is a concern, you can start with a basic sum-assured personal health insurance policy and then move on to increasing the amount as your finances improve.
A minimum of 24-hour hospitalisation is mandatory to claim health insurance
Apart from in-patient hospitalisation, health insurance can be claimed in the case of day-care facilities also. There are 20 to 50 daycare facilities including chemotherapy, dialysis, cataract surgery, tonsil surgery, etc. With medical advancements, some medical surgeries and procedures requiring prolonged hospitalisation are completed within 24 hours. Also, many health insurance companies have started providing coverage for OPD expenses as well which includes out-of-the-pocket expenses like doctor's consultation fees, pharmacy expenses, cost of spectacles and contact lenses, etc.
If I disclose everything, insurance will become expensive.
When opting for health insurance, many people worry that they will be hit with higher premiums if they disclose the whole truth about their medical condition and history. This isn’t the case! By disclosing all information about your health and history, you will be in the best possible position to get the right plan for you and your requirements. Also, your insurer can cancel your policy or reject your insurance claim in case they find important facts being hidden or misrepresented at the time of buying the policy. Be very honest about your existing health issues, and your lifestyle habits of alcohol or tobacco consumption, so that any ailment which is even slightly linked to these happens, and the claim of the same is not rejected.
In case you have your health insurance in place - GREAT JOB! - but just like your investments, you need to revisit your insurance. As you grow old you might need extra health coverage or there might be a better product for you with a cheaper premium - therefore revisit your insurance every year.