Amarnath Saxena
The internet has made buying health insurance easier than ever. You can now compare policies from multiple insurers right sitting at home. Online purchasing is paperless, fast, and transparent as everything can be tracked on a single dashboard. However, whether you’re buying your first policy or switching to a better plan, it’s crucial to know what pitfalls to avoid.
Here are the 7 most common mistakes people make when buying health insurance online and tips to help you choose the right plan.
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Not Reading the Policy carefully: One of the biggest mistakes is skipping the policy document, as the terms and conditions outline coverage, exclusions, limitations, waiting periods, and claim processes. Ignoring these details can lead to unpleasant surprises during claim settlement, so it is essential to read the entire document carefully, paying close attention to payment options, treatment coverage, and room rent limits, and to seek clarification from the insurer or a professional if anything remains unclear.
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Focusing Solely on Lower Premiums: While low premium may seem appealing, it often comes with inadequate coverage, making it a costlier mistake to choose a plan without assessing your actual needs. It is important to evaluate your health, age, lifestyle, and existing conditions, along with the medical requirements of your dependents, and ensure that the policy provides comprehensive benefits such as hospitalization, pre- and post-hospitalization care, coverage for critical illnesses, and preventive check-ups.
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Not Disclosing Medical Conditions: Hiding medical history can lead to claim rejection, while being transparent may slightly increase your premium but ensures smooth claim processing when you need it most. Always disclose pre-existing conditions honestly when applying, as this protects you from complications and guarantees that your coverage works effectively when required.
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Not Comparing Different Plans: Settling for the first plan recommended by a friend or broker can mean missing out on better options, so it is important to compare coverage benefits and exclusions, hospital networks, available add-ons and riders, as well as the claim settlement ratio and overall service record to ensure you choose the most suitable policy.
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Ignoring Waiting Periods: Every policy has waiting periods for certain benefits, particularly for pre-existing conditions and maternity coverage, and ignoring these can leave you unprotected when you need care. It is therefore essential to check waiting periods carefully and, if they are too long, consider opting for a separate critical illness plan to ensure immediate protection.
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Overlooking Riders and Add-Ons: Many buyers overlook optional features that can significantly enhance coverage, such as riders for wellness programs, preventive check-ups, or alternative treatment coverage. Selecting add-ons that align with your long-term health goals ensures that your policy provides value beyond emergencies and supports overall well-being.
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Ignoring Deductibles and Co-Payment Terms: Deductibles and co-pays directly affect your out-of-pocket expenses, and a high deductible or frequent co-pay can make a seemingly affordable plan expensive in practice. For instance, if your policy has a ₹20,000 deductible and your hospital bill is ₹65,000, you must pay ₹20,000 before the insurer covers the rest. Similarly, with a 20% co-pay, you would pay ₹2,000 on a ₹10,000 bill while the insurer pays ₹8,000. Understanding these costs and balancing them with realistic healthcare usage is essential to avoid financial strain.
Buying health insurance online is fast and convenient and effective only if done wisely. Avoiding these common mistakes can save you from claim denials, financial stress, and inadequate coverage. Whether protecting yourself or your family, make informed decisions, compare thoroughly, and understand the fine print. The right plan ensures peace of mind and preparedness for life’s unexpected health challenges.
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