Bust Your Myths About Health Insurance Plans In India

Introduction 

None of us can foresee a sudden illness or an accident. We can fall ill or be a part of an accident at any point in time. The treatment of such a medical emergency is expensive. Adequate health cover like basic health insurance, critical illness insurance, or personal accident insurance helps in such times. 

Health insurance is one of the smartest decisions you take in life. But it is crucial to understand what you are getting by buying a health insurance plan in India. The terms and conditions of an insurance plan can often feel intimidating. Nevertheless, insurance companies and aggregators are nowadays making more and more information available so that you can make the right insurance purchase. 

At the same time, there are many myths surrounding health insurance that still prevail among the Indian populace. It is imperative to first clear the air on health insurance in India so that you make an informed decision in buying health insurance plans in India. 

The myths and associated truths about health insurance plans in India 

Myth #1—Health insurance plans are for people who are sick

Unfortunate events such as a sudden illness or accident can happen with anyone. You may fall sick or undergo an accident any day, and the treatment for getting better from that is expensive. In such a situation, if you have a health insurance plan, it’ll help you overcome associated financial and mental trouble. 

Myth #2—Health insurance is for saving taxes

A health insurance plan ensures that your medical bills are borne by the insurance company in case of a medical emergency. The tax benefit is an added advantage that comes along with the insurance plan. So no, health insurance is not just for tax benefits. However, go through the policy document carefully to not lose out on tax benefits. 

Myth #3—Group health insurance plan is adequate

Group health plans are useful, but they may not cover old parents or dependents. Also, such plans often come with a co-payment clause. If you are a part of a corporate group health plan, the policy becomes invalid when you quit the job. Alternatively, a personal health insurance plan for you and each of your family members provides cover to each of you for a lifetime. Also, group health cover can be an addition to personal health cover. 

Myth #4—Health insurance claims require at least 24-hour hospitalisation

Health insurance companies provide coverage even for daycare procedures that involve less than 24 hours of hospitalisation. Daycare procedures include the likes of cataract, hernia operation, dental treatments, joint and bone surgery, chemotherapy, ligament tear and meniscus tear surgery, and many others. Before buying a policy, carefully read its brochure to know the day-care procedures that are covered under that policy. 

Myth #5—More network hospitals and day-care procedures translate to a better policy

The number of network hospitals of an insurance company is likely to change every year. The same goes for day-care procedures. There can be removal or addition of network hospitals and day-care procedures. You should choose a plan as per your health requirements, and not just hospitals and procedures. 

Myth #6—Health insurance plans pay only when you get hospitalised

Many daycare procedures like kidney stone removal, dental treatments, cataract operation, alternative treatment and OPD treatments are covered under health insurance plans. 

Myth #7—Health insurance doesn’t cover pregnancies

Many health insurance companies have started offering coverage for pregnancies with some conditions. The conditions include coverage only for the first pregnancy, a waiting period of certain years, etc. So, if you are planning a child, look for a plan with maternity coverage, and check out its conditions. 

Myth #8—Smokers can’t get health insurance coverage

It is true that smokers and alcoholics are at a greater health risk. But that doesn’t mean they aren’t eligible to get covered under a health insurance policy. Health insurance plans are available for them at an extra cost and after strict health examinations. 

Myth #9—One can buy health insurance right before a surgery

Health insurance plans tend to have a clause called ‘waiting period’. As per the clause, pre-existing diseases are covered two to four years after the purchase of the plan. Also, insurers take policyholders’ medical history and let them undergo a medical examination.