9 Most Common Myths and Truths About Health Insurance in India!

In the present era, health insurance is necessary for everyone. But, it can be tedious to understand health insurance at times due to several myths and clauses. However, as the competition continues to soar, many insurance companies and third-party aggregators are making more and more information and facts available for customers to bust the myths pertaining to health insurance.

Here are some basic myths and truths about health insurance. Know them as it will help you make an informed decision while purchasing health insurance plans.

Myth 1: Group Health Insurance Plan is Enough

Truth: Several organisations are offering group health insurance policies to their employees. And many of us believe that group health insurance is enough to protect our health. But the truth is otherwise. 

If you are secured under a policy offered by your employer, you shouldn’t fully depend on it. Instead, you should buy a personal health cover for you and your family.

Though corporate plans are beneficial, they might not extend their coverage to old parents, dependent members. They may even come with a co-payment clause. Also, they remain functional until you are working in the organisation.  As soon as you quit the job, the policy becomes invalid.

Hence, owning a personal health plan for you and your family is necessary.  A personal health cover protects you and your family for a lifetime. Buy a policy today, as it gets costlier as you grow.

Read more: An introduction to Corporate Group Health Insurance

Myth 2: Smokers Don’t Get Health Insurance Plans

Truth: Many people believe that smokers are not eligible for health insurance. A survey has found that around 49% of individuals are regular smokers or alcoholic and they are not sure whether they can buy a health plan or not. 

If truth to be told, though such people are at a higher health risk, that doesn’t mean they are ineligible for health insurance. They can buy health insurance by paying a little extra and undergoing strict health examinations. So, despite you are a smoker or alcoholic, you can buy a health insurance policy.

Myth 3: Health Insurance Is Meant for Sick People Not Fit People

Truth: When it comes to medically fit people, many believe that they don’t require any health insurance plan.

This is perhaps the most irrational perception. 

The truth is that your healthy body can’t safeguard you from unforeseen incidents such as illnesses or accidents. Diseases like dengue and malaria can be easily contracted by healthy persons as well. On the other hand, anyone at any time can fall prey to accidents, the treatment of which can cost in Lakhs if a severe case. 

So, even if you are healthy today, you should have adequate health cover for tomorrow. 

Myth 4: Health Plans Pay Only If You’re Hospitalised

Truth: Gone are the days when operations and surgeries would require hospitalisation. With technological advancement, various surgeries are done within minutes. These surgeries are daycare procedures.

Cataract operation, kidney stone removal, piles operation, and so on. Post these surgeries, doctors discharge patients on the same day. The best part is that these operations are covered under health insurance.

Some insurers also cover expenses related to dental treatments, doctor fees, alternative treatment and OPD treatments under their health policy, which never require hospitalisation. 

Myth 5: One Can Buy A Health Insurance Plan Just Before A Surgery

Truth: Health insurance policies include a clause known as the waiting period. As per this clause, the pre-existing diseases are covered 2-4 years (depending on the plan) after the plan purchased.

One can’t evade it as while purchasing the plan, insurers ask for the medical history of policyholders or let them undergo a pre-policy medical examination. This prevents policyholders from getting their claim rejected in future if it (claim) is related to the pre-existing ailment.

So, saying that you can buy a policy just before surgery and enjoy the cashless treatment for the surgery is wrong.

Myth 6: More Network Hospitals & Day-Care Procedures Mean a Better Policy

Truth: This is not true. It's important to note that insurance companies may upgrade (increase or decrease) the number of network hospitals or daycare procedures.

An insurer’s network is likely to alter every year that can result in adding some more hospitals or removing others from the list. The same concept applies to day-care procedures. 

Therefore, it is important to choose a plan as per your health conditions and requirements, not just based on the network hospitals and daycare procedures. 

Myth 7: Health Insurance Is Just For Tax Saving Purposes

Truth: Many people in India consider an insurance policy more of a tax-saving instrument than a healthcare coverage providing medical emergency. So, they don't like to read the policy document carefully.

But the truth is that a health insurance policy takes care of your health. When you meet any medical emergency and hospitalised, the insurance company bears all the medical bills and you don't have to pay even a single rupee.

It is always suggested to go through the complete policy document carefully to eliminate the chance of facing any type of surprise at the time of a claim. If you don't read the document carefully, you might have to regret it in the long run and lose out a great opportunity of gaining tax benefits. Health insurance is not merely for tax benefit.

Myth 8: Health Insurance needs at least 24-Hour Hospitalisation

Truth: Many believe that a claim is approved by insurance companies only in case the insured person is hospitalised for at least a period of 24 hours.

This is not true. Insurance companies also provide coverage for daycare procedures that don’t require 24 hours of hospitalisation. The procedures include dental treatments, cataract, hernia operation, ligament tear and meniscus tear surgery, joint and bone surgery, Chemotherapy and many other.

It is advisable to read health policy brochure carefully to find out which day-care procedures are covered under the policy.

Myth 9: Health Insurance Plans Don’t Cover Pregnancies

Truth: Well, this was a relevant fact that some years back when only a few health insurance firms used to cover maternity procedures, which were considered successful claims in the maximum cases.

However, this trend has now changed completely as most of the insurance providing firms have begun delivering the coverage for pregnancies.

Although certain conditions govern the cover offered for pregnancies. This includes a waiting period of a specific duration, coverage valid only for the 1st pregnancy, and so on.

Hence, when searching for an ideal plan for the maternity coverage, make sure it provides cover for pregnancies, with or without any conditions.

Also, Read 

Religare Health Insurance Launches ‘Moment of Truth’ Campaign for Customer Awareness

At What Age Should You Buy Health Insurance? Is 25 The Right Age?

Conclusion

These are the 9 most common myths about health insurance policies in India. If you have any question about health insurance policies in India, contact us at our toll-free number 1800-1205-698.