5 Top Myths about a Health Insurance Plan

2024-08-02

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Nobody likes to think about their own death and hence, most of the people do not even buy a life insurance plan to secure their goals. However, this is not the only reason that people don’t buy a life insurance plan in India. The awareness level for health insurance is lower as compared to life insurance as per report released by IRDAI in their Insurance Awareness Report. That is because people tend to relate health insurance with death. Similarly, there are a lot of myths about health insurance plans that needs to be debunked. The underlying importance of buying a health insurance plan is unquestionable. Moreover, being financially educated enables you to make better financial decisions.

Let us discuss the misconceptions that are prevalent about health insurance plan.

What is a Health Insurance Plan?

A health insurance plan is a contract signed between the insurance provider and policyholder stating that the insurance company will cover the medical expenses incurred by the life insured. Generally, insurance companies have collaboration with various hospitals to ensure cashless treatment for the patients. In a way, it makes the entire process hassle-free, and less time consuming.

However, there are some preconceived notions about health insurance plan that needs to be debunked:

Myth 1: Meant for unhealthy people

Are you in the pink of your health? Well, congratulations! Hope you stay healthy and fit all the time. However, we cannot predict the future and hence, nothing can be said about what can happen when. So, it’s wise to stay on the safer side by buying a health insurance plan. Also, we often think that health insurance plan will cover any illnesses and diseases. But health plans also provide coverage for accidents – that may happen anytime and at any age. A health insurance plan can prove to be beneficial during these times as you do not have to worry about the expenses.

Myth 2: Health insurance and critical illness cover are same

Arrays of factors are responsible for the diseases that are mushrooming in the nation. Not everything can be blamed on the changing environmental condition. We live a sedentary lifestyle that makes us prone to diseases such as cardiac arrests, cancer, and diabetes. The myth is – a health insurance and critical illness cover are same. But the truth is – they are different. A health insurance plan covers the medical cost while a critical illness covers non-medical expenses as well. If you have a health insurance, it is better to have one more layer of security. Buy a good term insurance plan that covers critical or terminal illnesses. Treatment for critical ailments is expensive and having an extra helping hand will be beneficial.

Myth 3: Health insurance is “only” a tax-saving tool

Life insurance plans including health insurance offer tax benefits under Section 80C and Section 80D of the Indian Income Tax Act. Most of us believe that life insurance policies are simply tax saving instruments. Although, these plans help in saving tax, but that’s not the only purpose they solve. A health insurance plan helps you in saving money when it comes to medical treatment. The soaring cost of health care can be taken care of in a smooth manner if you have a health insurance plan that suits your requirements.

Myth 4: Buying health insurance online is not safe

We are living in the era of digitalization. The brick-and-mortar shops do not provide such comfort and convenience. Although insurance providers have not shifted completely to online mode of business, however, they ensure that their customers do not face any issues while buying a health insurance plan online. For maintaining complete privacy and to protect their customers from potential frauds, life insurance companies provide secure payment gateways

Before you hit the “pay premium” button, ensure that the website is secure and there’s a padlock symbol in the web address. Do not provide your personal or financial information on a webpage that is not secured.

Myth 5: Coverage under group health insurance is enough

If you are covered under a group health insurance plan, check the benefits that you are entitled to. Assess your current needs and also take the needs of your family members into consideration while examining the adequacy of group health insurance plan. Generally, group health insurance is provided by employers. The group insurance will not be active if you change job. Therefore, it is important to have additional health insurance coverage to help you stay protected at all times.

Protect yourself with the Best Health Insurance Plan

It has become quite evident that a health insurance plan is a necessity. You don’t have to burn a hole in your pocket if you or someone from your family gets hospitalized. Rather than crossing your fingers to go without health coverage, you should buy a health plan. You may not have been sick for a day in your life, but remember, none of us are immune to diseases. A single mishap or sudden diagnosis of a critical health condition may result in massive bills.

Debunk the myths and misconceptions floating around to distinguish fact from fiction. Understand the ins and outs of health insurance plan by reading the fine print thoroughly.