Health insurance is no longer optional in India. Medical costs are rising every year. A single hospital stay can drain your savings. That is why buying the right health insurance policy is very important
However, many people make mistakes while buying health insurance. These mistakes can lead to claim rejection, low coverage, or high out-of-pocket expenses. Most errors happen due to lack of knowledge or hurry.
This article explains the most common mistakes to avoid when buying health insurance. It will help you choose a policy that truly protects you and your family.
Choosing a Low Sum Insured
Many people buy health insurance with a low sum insured to save premium. This is a big mistake.
Hospital bills in India are increasing fast. A coverage of ₹3 lakh or ₹5 lakh may not be enough in metro cities. Even a short hospital stay can cross this limit.
You should choose a higher sum insured. Ideally, opt for at least ₹10 lakh coverage for a family floater policy. It gives better protection and peace of mind.
Ignoring Policy Inclusions and Exclusions
Not reading the policy details is a common error. Many buyers focus only on premium and coverage amount.
Every health insurance policy has inclusions and exclusions. Some treatments, procedures, or diseases may not be covered. Certain expenses like consumables or room rent limits may apply.
Always read the policy wording carefully. Check what is covered and what is not. This helps avoid surprises during claim time.
Not Checking Waiting Periods
Health insurance policies come with waiting periods. This includes initial waiting period, disease-specific waiting period, and pre-existing disease waiting period.
Many people assume coverage starts immediately. That is not true in most cases.
Check waiting periods before buying. If you or your family members have existing health conditions, choose a policy with shorter waiting periods.
Buying Only Based on Low Premium
A low premium policy may look attractive. But it may offer limited benefits.
Cheap policies often come with low sum insured, high co-pay, or strict sub-limits. This increases your expenses during hospitalisation.
Instead of choosing the cheapest plan, compare benefits. Look for value, not just price. A slightly higher premium can give much better coverage.
Not Declaring Pre-Existing Diseases
Some buyers hide existing health issues to get a lower premium. This is a serious mistake.
If the insurer finds out later, your claim can be rejected. In some cases, the policy can be cancelled.
Always disclose correct health details. It ensures smooth claim settlement and long-term coverage.
Ignoring Network Hospitals
Cashless treatment is one of the biggest benefits of health insurance. But it works only at network hospitals.
Many people do not check the hospital network before buying. Later, they realise their preferred hospital is not covered.
Always check the insurer’s network hospitals list. Make sure good hospitals near your location are included.
Skipping Add-On Covers
Basic health insurance may not cover everything. Add-on covers enhance your policy benefits.
Common useful add-ons include room rent waiver, no-claim bonus protection, and consumables cover.
Ignoring add-ons can increase your expenses during treatment. Choose add-ons based on your needs and budget.
Not Considering Family Floater Option
Some people buy individual policies for each family member without checking family floater plans.
Family floater policies are cost-effective. One sum insured covers all family members.
Compare individual and family floater plans. Choose what suits your family size and health needs.
Ignoring Claim Settlement Ratio and Service Quality
Claim settlement experience matters the most during emergencies. A policy is useful only if claims are settled smoothly.
Many buyers ignore insurer reputation and service quality. This can lead to stress later.
Check claim settlement ratio, customer reviews, and claim process details before buying.
Not Reviewing the Policy Regularly
Your health insurance needs change over time. Income increases. Family size grows. Medical costs rise.
Buying a policy once and forgetting it is a mistake. Review your policy every year.
Upgrade sum insured or add covers when needed. This keeps your coverage relevant.
Conclusion
Buying health insurance is a long-term financial decision. Small mistakes can cause big losses during medical emergencies.
Avoid choosing low coverage. Read policy details carefully. Declare health conditions honestly. Focus on benefits, not just premium.
Take time to compare plans. Choose a policy that offers wide coverage, good hospital network, and reliable claim support.
The right health insurance plan protects your health and your savings. Make a smart and informed choice.