Here are some of the common mistakes that senior citizens make while buying a health insurance policy in India.
Health Insurance
Buying a health insurance plan can be a lifesaver at the time of need. A lot of senior citizens tend to lose their retirement funds and savings to receive medical treatment. Having a health plan in such times ensures the best medical treatment without any financial burden. The following are common mistakes that seniors make while buying a health plan and the impact that they can have. Avoiding these mistakes is highly recommended.
ADVERTISEMENT
Health insurance policy for senior citizens is almost indispensable, considering the high medical costs for even basic treatment. The presence of a good health plan is often the distinguishing factor between hassle free treatment and constantly worrying about the cost of treatment. A good health plan makes sure that you and your loved ones receive the best treatment without cost being a factor. Irrespective of how important a health plan for seniors is, there are a few things to watch out for. Avoiding some of the common mistakes while buying a health insurance plan will ensure a smoother experience.
Common mistakes to avoid
Here are some of the common mistakes that senior citizens make while buying a health insurance policy in India. Avoiding these mistakes will ensure that you have a better chance of claim acceptance and an overall hassle free experience.
1. Pre-existing diseases
It’s a misconception that health insurance providers do not offer you a plan. If you have any sort of prior health issues. Insurance providers do understand that senior citizens might have some pre existing diseases and that the insurance is to alleviate them from the burden of high costs. It is extremely important that you disclose any pre-existing conditions before buying your health insurance plan. Almost all the insurance providers offer a waiting period, which you need to complete if you want to get treatment for any of your pre-existing conditions.
Informing your insurance provider about these medical conditions will help you secure a plan without any issues. Failing to disclose these medical conditions while buying a policy increases the chances of claim rejection by a significant margin. And even worse, you will feel it was a waste of time and energy to pay premiums for so long. It is always a good idea to be very transparent with your insurance provider.
2. Failing to research
In the case of senior citizens, a common trend that can be observed is that they usually rely on word of mouth to buy a senior citizen health insurance plan. If anyone in their friend circle or known people circle has purchased a health insurance plan from a certain insurance provider, they tend to choose the same. However, this might not be a great idea. The plan that your friend or relative has purchased might be very specific to their needs. They might not even have any pre-existing diseases which can hamper their claims.
It is for this specific reason that it is extremely important that you do a bit of research before buying a senior citizen health insurance plan. While you don’t have to attempt to become a research expert by the end of it However, comparing a few plans online can help you get a long way. When you compare different plans, you get to know the different coverages on offer, as well as the premium that each insurer is charging you. It also allows you to understand your plan a little better thus making your life a little easier.
3. Opting for low premiums
Senior citizens usually tend to buy a policy with less premium, with the intent of buying a basic health plan to cover their medical needs. However, there is a flawed argument in such decision making process. When you opt for a health insurance plan, solely on the premium, you might compromise on the coverage. It is not recommended to opt for a health plan that stretches it financially. However, buying a health insurance plan that offers adequate coverage without burning a hole in your pocket when it comes to the premiums, can be the ideal approach.
While buying a health insurance plan, look for different coverages such as pre and post-hospitalisation charges, health check-ups, doctors’ fees, emergency costs, etc. Being aware of the inclusions and exclusions of the policy will also help you go a long way. Thus, opting for the cheapest health plan out there can do more damage than good.
4. Buying only for tax benefits
The income tax code in India allows taxpayers to get a tax deduction for the premium spent on buying a health insurance plan under section 80D. And quite a few individuals buy a health insurance plan just to make the most out of it. If your primary motive is just to save on taxes, you might not explore health insurance plans for their benefits.
It is highly likely that you might not even compare different plans to understand the different coverages on offer, as well as the premiums that you might have to pay for the same. You might end up with a health insurance plan that is far off from your needs. And at the time of need, it might fall short of your expectations. Thus, tax benefits should be considered as an additional benefit of health insurance plans and not the primary benefit.
5. Add-ons
A basic health insurance plan can serve the purpose of quite a few individuals. However, the need for a health insurance plan can vary a lot for senior citizens. And this is where riders or add-ons come into the picture. Exploring the different riders of a health insurance plan will help you customise the plan according to your needs, rather than having to buy supplementary plans.
There can be instances where the native plan might not cover your pre-existing diseases or you might have to additional amount due to room rent limits. However, a rider can enable the same for you. By paying an additional small premium, you can make your plan much more robust and meet different conditions. A critical illness rider is another great example of health insurance add-ons.
6. Terms and conditions
Terms and conditions of health insurance plan are usually ignored while buying a new policy. Senior citizens mostly rely on generic information and Information that they have gathered from friends or family, or from insurance agents. Reading the terms and conditions of the plan can seem like a tedious task, but can help you in the long run.
Terms and conditions cover all the scenarios where your plan has your back and the conditions, where you cannot claim the policy as well. The time spent on reading terms and conditions will help you at the time of claims.
Conclusion
Buying a health insurance plan is no longer a luxury, but a need of the hour. Considering the ever-increasing costs of medical treatment, a health insurance plan offers you the financial cushion To receive the necessary treatment without having to worry about the expenses. However, merely buying a senior citizen health insurance plan might not suffice. Above are a few common mistakes that most senior citizens make. Avoiding these mistakes will ensure that you have even fewer things to worry about and focus on your health.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales
Disclaimer:The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the financial content as such. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
