8 Common Myths regarding Health Insurance
There are a lot of misconceptions regarding health insurance in India. The level of fallacies about health insurance is so high that sometimes people even request doctors to discharge their patients after 24 hours!
Similar incidents take across several hospitals of India and there is a clear lack of clarity regarding maternity plans, room rent, capping limits, etc. There is a popular saying regarding health insurance that ‘ a health policy should be bought when not needed so that it becomes useful when it is absolutely necessary’. Today we will burst some of the health insurance myths which will help you to compare and buy the right product.
1. Myth: Presence of network hospitals in your area
Fact: If you have bought an policy just because you have found your preferred hospitals in the list, then you have failed to realize a very important thing. Network Hospitals are a result of tie-ups between insurance companies and hospitals which stays for a fixed period. Hospitals and Insurance Companies continuously blacklist each other for various reasons. Therefore, the list of network hospitals keeps on changing from time to time.
2. Myth: 24 hours of hospitalization is necessary to claim the policy.
Fact: Medical Science has advanced and that has reduced the time to carry out procedures.
Generally, up to 140 such surgeries are covered by most insurers, with or without any capping limits. They are referred to as outpatient procedures and they do not come under the category of daycare or dental care. Thus, day-care claims in case of diseases like cataract, chemotherapy, lithotripsy, and other similar diseases.
3. Myth: Health Insurance Plans sold by PSU Life Insurance Companies are same.
Fact: Mediclaim policies issued by PSU companies have a lot of capping and generally not enough to tackle the inflationary rates. For example, if you are a policyholder and have undergone a heart surgery, then the PSU company will pay a capped amount which is sometimes 50% of your total expenditure. Defined Benefit Health Insurance Plans from PSU Companies are highly advertised and sold as “hassle free” alternatives with guaranteed payments. They cannot act as a substitute to Standard Health Insurance plans sold by General Insurance Companies.
4. Myth: Health Insurance is a great Tax-Saving Instrument.
Fact: Health Insurance should be bought with the objective of securing the health needs of your family. If someone invests carefully in the health plan, then you will be saving a lot more than taxes in the long run. Having said that, the government wants to incentivise the common man to buy health insurance and that is like an icing on the cake.
5. Myth: The benefits of health insurance are lost if they are not renewed on due date.
Fact: One should try to pay the premiums on the due date. However, if you fail to pay it, then there is a grace period of 30 days within which you can pay the premium. It is important to mention here that the anyone claims for any treatment is not going to be accepted unless your premium is paid in the grace period.
6. Myth: Cheaper policy is an easier option.
Fact: It is good to spend less for availing the same number of features in a health policy. You may also feel that you may not be using 100% of health insurance coverage amount, so what is the need of a costly plan. A cheaper plan comes with a restricted coverage and other important features are not available which may prove to be very helpful in times of medical emergency.
7. Myth: Buying a health insurance online is a risky affair.
Fact: Well, you can buy it offline from any agent but that carries a risk. Agents are not the representatives of any company, therefore you may not find them when you face any issue. On the other hand, the health advisors of 121Policy are company’s representatives and they have a liability to share the correct information and also assist you during the time of claim settlement.
8. Myth: Younger people do not need any health insurance.
Fact: Young people are healthy and they may not face any medical emergency in the near future. However, there is a stark increase in the incidence of lifestyle diseases and thus more young people are susceptible to diseases like arthritis, hypertension, diabetes, etc. Moreover, they have to pay a low premium for a higher coverage amount. All of us know that early investment in life is definitely a boon in the longer run.
Hopefully, the above misconceptions will help you to choose a great product and safeguard the financial needs during a medical emergency. Health insurance is a challenging product given its various technicalities and clauses. You can always visit our portal at www.121policy.com and compare various health policies.