There are several misunderstandings about health insurance plans that exist among policy customers. One of the most misunderstood financial products is health insurance. Because of a general lack of awareness and understanding of insurance, there are many misconceptions about health insurance, particularly in India.
Therefore, let’s dispel some widespread misconceptions about health insurance before you purchase a new policy or make changes to an existing one:
- Since I am in good health, I don’t need health insurance
Even if you are healthy and taking the best care of yourself, accidents and illnesses can still happen. The rising expense of healthcare might drain your bank account. Therefore, even if you are in good health, it is crucial to purchase a health insurance coverage.
- Only if I am hospitalised will I be paid
This is a typical misperception about health insurance. Although the insurance companies have a requirement for a particular number of hospital hours, there are several exceptions. You might not necessarily need to be hospitalised in order to have a surgery, for example. These operations are day care procedures and one of the significant advantages of health insurance.
- The solution is cashless.
Cashless hospitalisation, in the opinion of many policyholders, is the panacea to all their problems. However, the reality is that in order to use a cashless facility, you must first determine whether the hospital where you are receiving treatment is a part of your insurance company’s network of hospitals. In other words, the cashless option is only available at hospitals that are part of your insurance cmpany’s network. *
- The maternity programme won’t be paid for.
While this was true a few years ago, a lot of insurance companies have recently begun including maternity coverage in their health insurance plans, which includes coverage for both pre- and post-natal care as well as delivery costs.
- Purchasing a health insurance policy to reduce taxes
Many people buy health insurance just to reduce their tax burden. However, this is not a wise move. Instead of trying to save money on taxes, it’s crucial that you look for a plan that will protect you from medical bills. You will save much more than just taxes if you do this. **
- Existing illnesses
Due to their pre-existing conditions, many appear to be hesitant to purchase health insurance. However, the majority of health insurance policies today also offer the benefit of covering pre-existing conditions. However, there can be a waiting period before you can utilise that benefit.
- Only the family’s breadwinner requires insurance.
Another common myth regarding health insurance is that only family members who are employed must have it. Your family should be covered by your family health insurance plan, including your spouse, children, and parents.
- Purchasing a health insurance policy to save on taxes
Many people have the false belief that the primary purpose of any type of insurance is to reduce taxes, with coverage serving as a supplementary benefit. It won’t be very useful to purchase a health insurance policy just to save money on taxes. Instead of reducing your tax burden, it is advised that you purchase a health insurance coverage to protect yourself from any significant healthcare costs. **
In addition to the fallacies described above, there are numerous other misconceptions about health insurance and the types of health insurance that exist. Before choosing the health insurance plan that best meets your needs, be aware of such false information and do your research to learn everything there is to know about health insurance.
Since a lack of information may result in myths that are far from the reality, it is crucial that you invest in a proper health care plan only after knowing the fine print and policy requirements.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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