12 Common Health Insurance Myths

Young and Healthy People Don't Need Health Insurance

Young adults are more focused on their careers and think health insurance is something to worry about in their 30s and 40s. In reality, health and age have no relation, you can face a serious health crisis in your 20s when people are in their best shape.

Most young people don’t have enough savings to cover their medical expenses in case of serious illness or accidents. To protect yourself against the financial burden, health insurance is a must.

Corporate Insurance Is Enough

Companies offer group health insurance with standard coverage to their employees. But many people think their employer’s insurance is sufficient. The group health insurance that an employer offers only provides standard health coverage, which isn’t tailored to your unique health requirements.

You can customise your individual health insurance coverage and sum insured to fit your healthcare requirements.

Cheapest Policy Is the Best Policy

People often think the cheapest policy is the best, but fail to understand why it’s cheap. Policies with lower premiums offer restricted and basic coverage. It excludes important benefits that you need.

So choose your health plan as per the coverage and benefits it offers, not based on premiums.

You Don't Need Insurance if You Have Savings

In case of a health emergency, the hospital bill can dent your savings, which were set aside for other financial goals. And it is possible that you may not have the necessary savings to cover all your medical costs.

Health insurance reduces your financial burden by compensating for the medical expenses incurred without having to empty your savings.

Pre-Existing Diseases Are Not Covered

People have the misconception that pre-existing diseases aren’t covered under health insurance. If the insured has a pre-existing disease, he/she will be covered for those illnesses after a waiting period of 4 years.

Health Insurance Is Expensive

People assume health insurance comes with high costs. Though some plans may have high premiums, some plans suit your budget and health care needs. Premiums on your health insurance depend on your health, young and healthy people are usually charged low premiums.

Prioritize Quantity Over Quality for Daycare Procedures

Another myth is that one should opt for a plan that offers extensive daycare coverage. However, it is important to look at the categories of daycare treatments and choose a plan that offers broad categories of treatment and general procedures.

Insurer Pays for All Costs

People assume that the insurer pays for all the medical costs incurred, when that isn’t quite right. There are some exclusions, limits, and sub-limits on certain medical procedures, like cosmetic surgeries and dental procedures etc. Read the insurance policy terms carefully to avoid any problems during claims.

Non-Renewal of Policy = Loss of Benefits

Every insurance plan has an expiry date, and even if the insurer fails to renew the policy on the due date. The policy can be renewed within 15 days in case of monthly premium payment model and 30 days for annual payment model, ensuring the policyholder is considered as ‘continuously covered’ to get pre-existing disease coverage benefit with no additional waiting period.

Protection Starts From Day 1

When you take an insurance plan, you don’t get the benefits right away. Every policy has a ‘waiting period’ where certain illnesses are not covered. There is a waiting period mentioned in the insurance plan, within which medical expenses for a specific disease are not covered.

Buying a Health Insurance Policy Online Is More Expensive

As every sector adopts digitalization, today you can buy health insurance online without having to deal with any agents. This lowers your premium payments since the insurance company saves commission costs. Most people think buying insurance online is not safe, but if you do your due diligence, buying health insurance online is safe.

Pregnancy-Related Claims Are Not Entertained

Earlier, insurance companies didn’t cover maternity expenses, but now they do. Most health insurance offers maternity benefits as an add-on. Coverage for pregnancy and maternity expenses starts after a specific waiting period mentioned in your policy, where certain plans only cover the first pregnancy.