Health insurance, like most insurance, shouldn’t be taken for granted. With continual technological advancement comes the increasing cost of health care. This is solely due to the cost of drugs and high-earning medical professionals.
Costly healthcare hurts everybody; that is why people opt for health insurance to reduce the strain on their finances. Sadly, most of these people make simple mistakes when buying the policy, which eventually costs them dearly.
This post contains six such mistakes that should be avoided. Read on to learn more!
- Incomplete Research
The first mistake made by potential policyholders is hurrying to make a purchase. Before buying a health insurance policy, you need to understand how it works and compare different policies and their providers. This is important to avoid buying inappropriate policies from unsuitable insurers.
- Hiding Health History
Insurers will definitely ask questions regarding your health, and those questions can be very personal. However, hiding details about your health is not advisable. With the information you provide, the insurer will get an idea of how to help you with coverage and claim. However, when they are misinformed, more harm is done than good.
- Not Getting Enough Coverage
How much you pay as premiums determines the cost of your insurance. For most people, the premium is set as a yardstick to determine how much coverage they can afford to buy. In such cases, the policy so purchased may fail you at the hour of need. Coverage should not be defined by its cost rather by what it covers. A standard health insurance policy should cover:
- Hospitalization expenses (before, during, and after)
- Waiting period
- Rushing Through the Terms of Agreement
Another mistake people make when buying health insurance is overlooking the terms of the agreement (small prints). A thorough understanding of what the policy will and will not cover helps during claim settlements. You can cancel the agreement if you are not satisfied with it within 15 days of signing the same.
- Not Considering Add-ons
In addition to the standard insurance coverage, you should consider buying add-ons. These provide coverage in situations that are not originally covered by your policy. When you fail to add extra coverage to your policy, there is the risk of a gap in the insurance.
- Buying the Policy to Save Taxes
Tax reductions shouldn’t be the reason for purchasing health insurance. It is a known fact that health insurance premiums reduce your taxable income, such that the higher your premium, the lower the tax on your income. In other words, the premium you pay is not taxable. However, this should not be the primary reason for purchasing the insurance, lest you get the entire concept of health insurance wrong.
In cases where health is concerned, it is paramount to take it seriously. When buying health insurance, adequate knowledge is important to ensure the necessary areas are covered. For a more professional view on this, contact our team of experts at Bell Black Insurance. We will ensure that you get as much health coverage as possible at affordable rates. Contact us today to get a quote for free!