Health Insurance is the most sought-after product by the massive population of India. For the first time, in the year 1948, the first government-sponsored health insurance for employees. But the sponsorship was for the blue collared workers only. Soon, the Central Government launched the scheme for their employees and their families.
In the later years when the General Insurance was nationalized in 1973, all four companies introduced Mediclaim Policy. Gradually, the sector was open for private-sector insurers also which contributed to the diversification of health products.
What is Health Insurance?
A type of insurance policy that covers the insured for medical and surgical expenses. The policyholder chooses a limit of coverage for which a premium is paid to the insurance company. At the time of claim, the policyholder will be reimbursed the expenses incurred for treatment due to illness or injury.
Popular Myths about Health Insurance
1. Health Insurance is a product for old people
Many believe that health insurance is only for old people. This is mainly because people attribute health insurance for critical illnesses only. However, this isn’t true as health insurance covers all kinds of medical emergencies- right from accident-related hospitalization, illnesses and even annual health check-ups in some cases. Moreover, people often do not understand the benefits of buying health insurance at an early age. For each claim-free year, the insured gets a bonus which is cumulatively added.
2. Health Insurance Policy cover starts from day one
3. Group Health Insurance Policy is sufficient to cover
Group Health Insurance Policy offered by employers is understood sufficient by the individuals. But the actual limits of the cover are governed by the group claim ratio. Also, it does not necessarily cover family members. The employees believe that the insurer will pay for all the losses and anything over and above will be taken care of by their employer.
Other than a Group Health Insurance policy, it is wise that one should buy a separate health insurance policy for themselves. It is because you are covered under the Group Policy till the time you continue with the company. If you change the company, you may lose the benefits earned so far. But under an individual policy, all the benefits will continue if the policy is renewed well in time without a gap.
4. Pregnancy or Maternity Covers are not offered under the Health Insurance Policy
It is a common myth that maternity cover is not provided at all by the insurers. This is not true as maternity cover can be purchased from any health insurer. The fact is that maternity or pregnancy cover comes with a waiting period of approximately 24 months. Hence, it will be great to opt-in for the cover if you are planning to be a parent soon.
5. Non-Disclosure of facts will help
People believe that non-disclosure of facts like pre-existing illness at the time of taking the policy will not be a good idea. They try to hide their details but end up losing extra money due to this thought. It is always better to disclose a clear state of health at the time of taking a policy. As per the general regulation by IRDA, some diseases will have a waiting period. In any case, your pre-existing will be diagnosed by a doctor. Hence, no point in hiding the details.
6. Online purchase of health insurance is not safe
The sales of health insurance have grown online gradually. But people think that online purchase may land them into some fraud. This is not true as the insurers have started their online portals to purchase policy conveniently. People can compare and buy policies over the internet. It is quick and safe.
7. The Premium of the policy should be low
People trust that the companies that offer them a health product at a low price are authentic. They believe that at a low premium they will be saving money for each claim-free year. But the fact is that these low-cost policies may come with some restricted offerings. One should always judge the product for the coverage needed and offered. A proper health insurance product comparison will be of great help.
8. Old Health Insurance Policy documents are of no use
People generally destroy old health insurance policy documents. They believe that unlike other policies a health insurance policy will be of no use. But they should be aware of the fact that these old policies will be proof that the insurance was in continuation from last many years. It is an important piece of information especially to be used by the TPA at the time of claim.
Considering today’s lifestyle and the level of stress, health hazards have increased. Having a health insurance policy is a must. But people should be clear in their thoughts with their demand and product availability.