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5 Top Myths about a Health Insurance Plan

dateKnowledge Centre Team dateMarch 15, 2021 views141 Views
5 Top Myths about a Health Insurance Plan

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.

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Frequently Asked Questions (FAQs) for Health Insurance

Buying health insurance online is cheaper and more convenient than getting a policy through an agent. Insurance companies work on the premise that people who have access to the internet and are willing to buy policies online are more likely to be better-off and healthy. Moreover, online plans save a lot of money for the companies as the administrative costs such as documentation and office space get eliminated. The insurance companies pass on the savings to the customer and offer lower premiums on online health insurance plans. With online plans, you do not have to visit the bank of the insurer’s branch and can buy the policy sitting in the comfort of your home.

Canara HSBC Oriental Bank of Commerce Life Insurance provides a comprehensive health insurance plan named Health First. It is a fixed benefit plan that provides a lump-sum amount on the occurrence of heart or cancer-related conditions, besides 26 other major critical illnesses. It is a flexible plan that gives you the freedom to choose the cover you need along with various options to customize the plan according to your requirements.

Diseases can strike without any warnings. Having a health plan protects you from unforeseen financial hardships and helps you lead a stress-free life. A health plan also ensures that you receive quality treatment in case you are diagnosed with a serious illness. A health plan creates a buffer around your savings, which remains unscathed even in cases of substantial treatment costs.

There are no uniform rules to select an insurance policy as the needs and medical history of people vary. However, Health First plan from Canara HSBC Oriental Bank of Commerce Life Insurance offers comprehensive coverage, which could be adequate to take care of all your health insurance needs.

The health insurance premium depends on a variety of factors such as age, geographical location, lifestyle habits and occupation. The best way to calculate health insurance premiums is to use a good online premium calculator which is easily available.

With the change in lifestyles, the incidence of diseases has increased drastically. Health insurance is necessary to cover against lifestyle diseases, which are on the rise due to poor nutrition, lack of physical activity and pollution.

A health insurance policy ensures that you and your loved ones do not have to think about the finances while opting for treatment. In the event of hospitalisation, a knowledge of the claim process saves the policyholder from undue hassles. A hospitalisation can generate reams of bills and documents. The claim process of fixed-benefit health insurance is very simple as the payout does not depend on the cost of treatment. In case a critical illness is diagnosed you just have to intimate the insurance company. The insured just has to fill a claims form and attach the doctor’s report on the illness. One doesn’t need detailed bills and prescriptions to claim the sum assured. The entire process is very simple and hassle-free.

Health insurance premiums can help you in reducing tax outgo, as it is eligible for tax deduction under Section 80D of the Indian Income Tax Act, 1961. If you choose a health insurance plan for parents aged 60 years and above, you can claim Rs. 50,000 as a tax deduction. Senior citizens up to 60 years can also claim up to Rs 25,000 as a deduction for the health insurance premiums paid for themselves, or for their spouse or children. This deduction will be available with respect to payments towards annual premium on a health insurance policy, or preventive health check-up of a senior citizen. It is also available for any other medical expenses related to senior citizens. In such a case, if you are paying the health insurance premiums for your senior citizen parents, the total deduction you can avail is Rs. 75,000 per year.

There are no fixed guidelines for choosing adequate health insurance cover, but the cover should depend on factors such as income, family history of diseases and geographical location. Considering the high cost of medical care in metro cities, one should have a minimum cover of Rs 10 lakhs. The cost of hospitalisation and associated costs are higher in large cities. Smaller cities have lower cost of living and a cover of Rs 4-5 lakhs would suffice.

Health insurance plans do not cover all the diseases and certain conditions are excluded from the cover. Some of the common exclusions are:

  • 1.Pre-existing medical conditions
  • 2.Alternative therapies
  • 3.Cosmetic treatments
  • 4.Pregnancy and child birth
  • 5.Diagnostic expenses
  • 6.Dental
  • 7.Injuries caused due to a suicide attempt
  • 8.Waiting period clause
  • 9.Permanent exclusions: Injuries due to war, HIV, intentional injuries, congenital diseases, and others are permanent exclusions

Diseases can strike without any warnings. Having a health plan protects you from unforeseen financial hardships and helps you lead a stress-free life. A health plan also ensures that you receive quality treatment in case you are diagnosed with a serious illness. A health plan creates a buffer around your savings, which remains unscathed even in cases of substantial treatment costs.

Employer waiting period: Waiting period is the length of time that an employer will make a new hire wait before the employee is eligible for coverage access under the company's health

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