Myths And Mistakes To Avoid While Buying Health And Life Insurance
Investors India|July 2020
Myths And Mistakes To Avoid While Buying Health And Life Insurance
Buying a health insurance policy for self and family is considered to be the first step in the financial planning process. Still, many of us ignore it citing lame reasons.
Manish Jain

A medical emergency may strike anyone, anywhere at any time. Be prepared to meet the rising hospital cost before it damages your investment portfolio. Do not take chances when to come to insuring against medical needs. Here are 5 myths that might be making you to not buy a cover and deter you to take informed decision. Also, Life insurance is not a commodity that could be bought off-the-shelf. In doing so, there is bound to be a mistake. Here are some common mistakes to avoid and not regret later.

HEALTH INSURANCE MYTHS

I am still young and in perfect health. Why should I buy health insurance?

In fact, the right time to buy a health insurance cover is when you are in the pink of health and leading a fit life. A reason often cited to buy health cover at an early age is its low premium as the health risk is low in younger lives. As one age, the body gets prone to illnesses and hence the morbidity risk gets higher and so does the premium.

The health insurance is not only about illnesses and diseases. It’s a universal truth that accidents may occur anytime and at any age. A health cover could come handy in such an event. At times, certain ailments remain unknown to us until their symptoms are visible. As per regulations, such pre-existing ailments are covered after at least 48 months of holding a health policy. Therefore, buying early may help in better claim management.

Although, not a mandate, a policy bought at an early age and renewed for quite some years without any claim, may help in better claim experience as and when it arises. Remember, one doesn’t buy insurance to get sick rather it helps cover the risks if there is a hospitalization.

The best policy is the one that has lowest premium.

Unlike a term life insurance plan which is low-cost and high-cover plan, an attempt to find out the cheapest health plan may not be the right approach. It’s almost improbable to find two plans with similar features to make a comparison based on premium. The low-cost plans may not include all features or may have restricted features.

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July 2020