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Debunking Some Of The Biggest Myths Surrounding Health Insurance

Let us bust some of the biggest myths surrounding health insurance which prevent people from buying it as well as maximizing its benefits!
Vanya Gautam Updated on Jul 13, 2022, 18:15 IST

Uncertainty is the only certainty in life. Surely most of us have heard this right?

But how many of us are actually able to understand and implement this in our life? Despite the covid pandemic perhaps serving as the biggest wake-up call for the entire world, many of us might have not taken a health insurance yet, right?

While the reason behind not buying a health insurance can be any, its often the myths surrounding it that really put people off.

So let us bust some of the biggest myths surrounding health insurance which prevent people from buying it as well as maximising its benefits!

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Also Read:?7 Benefits Of Buying Health Insurance Right Away

Myth 1: I Don't Need Health Insurance As I Am Young & Healthy

Many young millennials in their 20s or early 30s think that they do not need a health insurance because currently they are fit and fine. That's where they fail to understand the essence of purchasing a health insurance. Despite being healthy at present, you still definitely need health insurance. This is required to cover a sudden medical emergency which can burden you with hefty hospital bills.?

Besides that, the uncertain future wherein you or your family may fall ill and/or get hospitalised, would also need to be covered through the health insurance, so that your finances don't get disrupted with the high medical bills. Remember that you can become sick any day, anytime, and having an adequate health insurance can prove to be a boon in covering the expenses and protecting your financial health!

Also, another benefit of buying health insurance early on is that in case of any pre-existing illnesses, there is a waiting period of usually two to three years in health insurance for such diseases. During that period, if you, the policyholder, gets admitted to the hospital due to any ailment related to that disease, that won¡¯t be covered by the health insurance company. So buying health insurance early, before developing any illness, ensures that you don¡¯t have to go through the waiting period.??

Myth 2: Benefits Of Health Insurance Start From Day 1

Another myth surrounding health insurance is that you can avail the benefits right from the day you buy the policy.?

That's untrue. All health insurance plans usually come with an initial waiting period, also called the cooling period, of one month, during which you cannot make any claim. However, remember that some policies tend to cover accidental hospitalisation from Day 1 itself. Also, some health insurance plans come with a one to four-year waiting period for different diseases and as per the chosen plan. During this period you cannot make any claim for those specific illnesses mentioned in the policy.?

For many senior citizen health insurance policies, the waiting period for pre-existing illnesses is usually one year only. This is primarily because the instances of hospitalisation are more in the case of senior citizens. But remember that to check all these aspects by deep diving into the policy details before purchasing it.

Myth 3: Why Should I Take Separate Plan When I Am Covered By Employer¡¯s Corporate Plan

Many people who are already covered under their employer¡¯s corporate health policy simply turn a blind eye towards purchasing a separate health insurance for themselves and their family. They do not feel it is necessary to buy separate health insurance. That's where they go wrong.?

You cannot depend on the employer¡¯s health insurance plan entirely. Firstly because if you lose your job or switch to some other employer, the health insurance benefit will no longer be available. Also, considering the rising medical inflation, the cover under corporate policies might not be enough to adequately cover your medical expenses.?

So even if you are covered under a corporate health policy, it is always good to have individual health insurance for yourself and your family!?

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Myth 4: It¡¯s Okay To Not Reveal Pre-existing Illnesses

Another myth is of hiding your pre-existing illness. A lot of people tend to hide their pre-existing illnesses from the health insurance company by assuming that if they do not reveal their pre-existing ailments during purchase, then the health insurance company will cover them.?

That's untrue. If you have any pre-existing illness which you are aware of, then the health insurance company assumes that you will reveal it to them while purchasing the policy. However, if you do not do so and hide it, the insurance company can reject your claim if they come to know about it when you make an insurance claim. So it's better to be honest and reveal such things when purchasing the insurance.

Myth 5: All Expenses During Hospitalisation?Are Covered

It is often assumed that if you have health insurance, it will automatically cover all the expenses incurred by the policyholder during hospitalization, unless he/she exceeds the cover amount.?

But surprisingly, this is far from the truth. Your health insurance policy can have exclusions and/or co-payment clauses. Exclusion in health insurance means certain ailments or procedures which are not covered by health insurance, for which its you who has to pay from your own pocket if a situation arises. Next is the co-payment clause, wherein the health insurance covers only a part of the hospital bill, like 50% or 70%, and the rest has to be paid by the policyholder. That is why it's important to read the fine print of the health policy to understand such terms and conditions.

Also Read:?Does It Make Sense To Buy Term Insurance For Family Before You Turn 30?

For more of such simplified financial content and news, keep reading Indiatimes Worth.?Click here.

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