We all know medical expenses these days are sky rocketing. If yourself or any of your relative falls seriously ill and gets hospitalized, managing funds to handle such situation is the first thing that comes to our minds. For such unexpected situations, people usually take various insurances like health insurance, accident insurance, life insurance, critical insurance etc. However there are still some situations where those insurances you bought are of no use and ultimately you have to pay those medical expenses. Now money Dial will shed some light on those mistakes which usually increase your unforeseen medical expenses:
4 General Mistakes we do while Purchasing Insurance
Not reading the policy documents:
Usually in India most of the people take health insurance for two purposes which are
- Tax saving purposes
- Cover any medical emergency
In this section, we will discuss more about #2. People usually purchase the health insurance without doing any research and once it is purchased, they would not read the terms and conditions of the policy. They think that once they are hospitalized, they would use the policy and make the payment. However, this is not the right assumption as there are many diseases which are not covered under that policy and if you have any of those diseases, your policy wont cover your illness expenses. So make sure you read the policy document properly and understand all the terms and conditions.
Wrong information about Pre-existing disease:
Most of the people don’t declare their pre-existing diseases before purchasing their health insurance. As we all know, this is not right however we are not aware of the possible implications of it. When you fall ill due to some pre-existing diseases and you get hospitalized, the insurance provider will get the medical history of the patient checked before paying your expense. If at that time, if they uncover your existing diseases, they won’t pay anything for your illness.
Skipping Medical Checkup:
Usually insurance company does not conduct any medical checkup if the person is 45 or below.However, if you intentionally skip the medical checkup knowing you are suffering from any major disease, you will get the policy as part of normal process. There won’t be any problem in getting the policy, however in future when you’ll file the claim regarding your illness; this is when the insuring company will stop your claim when they uncover your existing diseases.
Capping on room rent and ICU charges:
There are many insurance policies which offer insurance at low premium. In such cases, they cap the price of hospital services like limit on hospital room, capping on ICU charges etc. If you are not aware of this cap, in that case you will continue under false expectations that your policy will cover all your medical expenses. However, the company will cover the expenses but that will be limited to the capped amount and anything above that will be paid by yourself.