Health insurance is a protection against loss by illness or bodily injury. It covers the insured from the cost of medical or surgical expenses. Medical care can be very expensive. Presently, even if we are healthy, as we age, we develop certain medical conditions. It is always better to buy a health insurance as soon as possible.

There are various insurance companies offering different types of health insurance products and plans. Some plans reimburse expenses, whereas in some expenses are directly paid to health care provider. It is very important to consider and re-consider various aspects at the time of buying or renewing a health insurance plan else it will result in heavy unexpected expense. Some of the common mistakes individuals make are:

1. Focussing only on premiums and deductibles:

Premiums should never be the only criterion for choosing a health insurance plan. Lower premiums may come at the cost of reduced coverage or hidden costs billed only at the last minute. One must look at all the associated coverage and costs and not just overall deductible.

2. Not undertaking proper research and comparison:

It is necessary to understand the plans in terms of the coverage and network and the benefits they offer before final purchase.

3. Not disclosing medical history:

Health declaration forms filled at the time of purchase are accepted by the insurance company on good faith. If any case of non-disclosure is found out later, then it can result in insurance claim getting rejected.

4. Overlooking fine print:

Always read the fine print before you sign anything, with regard to network hospitals, medicine cover terms etc. If your preferred physician or clinic does not feature in your insurance network or if your insurance does not cover prescription drugs; then you will have to spend more money from your pocket.

5. Insufficient coverage:

You may opt for lower coverage in order to save some money considering that you are seemingly healthy and don’t find it necessary to buy it. However, health is uncertain and if an ailment/accident occurs, you will not have the required coverage, leading to unexpected expenses. Thus, it is important to take enough health insurance coverage to take care of all your serious health related expenses.

6. Considering employer provided health insurance plan is sufficient:

Employer provided group insurance plans have a limited scope of cover and are not personalised for specific requirements or riders as per your or your family’s needs. Also, if you quit your job or at the time of retirement the coverage would end. Thus, it is advised to always take a separate health insurance plan to adequately and continuously cover you and/or your family’s health needs.

7. Buying health insurance as a tax saving tool:

Tax saving is only an additional feature, the main benefit of health insurance should never be forgotten; that it protects your or your family against the financial loss of medical or surgical expenses due to illness or bodily injury.

Thus, you must be carefully regarding the above mistakes before purchasing a suitable health plan and also remember to read the policy terms and conditions carefully.