Health Insurance Myths and Facts

The world of health insurance can feel like a maze of misconceptions, leaving you uncertain and hesitant. But fear not, BenefitsCircle is your unwavering companion in this journey from confusion to clarity. Understanding the myths of health insurance can help you save your hard-earned money and give you peace of mind. BenefitsCircle is more than an insurance platform, we are here to demystify health insurance and empower your choices. Read on to understand how to avoid unexpected out-of-pocket expenses and the consequences of believing in these myths.

Myth 1: Health Insurance Is Only Necessary for the Sick

It is a common notion that health insurance is only necessary when illness knocks at your door. But in reality, life is not just about being sick. Health insurance equips you and ensures you are prepared for medical emergencies and avoid financial concerns. Considering your health insurance only as a backup for illnesses misses its bigger role.

Health insurance is not just about medical bills. It is your safety net for unexpected events, be it accidents or unforeseen health issues. Health insurance steps in as a shield, lessening the impact on your pocket while ensuring swift and quality care.

Myth 2: All Health Insurance Plans are the same

It is easy to assume that all health insurance plans are identical, offering the same coverage. But that is like thinking one shoe fits everyone perfectly. In reality, health insurance is not one-size-fits-all. Plans vary widely, from comprehensive coverage for all aspects of well-being to more focused options that match your current life stage.

Choosing health insurance is like crafting a custom safety net that fits you perfectly. It is not just about picking a plan, but about creating a coverage that aligns with your lifestyle, aspirations, and ways to save on taxes. At BenefitsCircle, we understand the importance of personalized coverage, breaking free from myths and embracing the beauty of tailored protection.

Myth 3: Health Insurance Is Too Expensive

Not at all. Let’s take the example of Amit. He suffered from dengue last month. He was admitted in the hospital for ten days and had a bill of Rs 2, 50,000. He did not have a health insurance cover and had to pay this out of the funds he was saving for a new car. He wasn’t sure if it was the best hospital in his area, but it was all he could afford. Add to that he had to arrange the funds at short notice. Miscellaneous expenses inflated the bill.

If he had health insurance, by paying a premium as low as Rs 25* per day, he could have avoided all of this. So, going by the opportunity lost, compromise in treatment, mental disturbance and anxiety, health insurance is not costly at all. It is a path to a healthier financial future that is open to everyone.

To make the premiums easier on your wallet, you can find plans that align perfectly with your goals in case of a mishap. This is because medical bills can surprise you, but with the right coverage, you will be ready to deal with any situation.

Myth 4: Pre-existing Conditions Are Not Covered

Some believe that if you have a pre-existing condition or a previous health issue, you will not get health coverage. On the contrary, health insurance is for everyone, including those with pre-existing conditions.

In India, buying health insurance is entirely possible even if you are dealing with a pre-existing medical condition. A majority of health plans extend coverage to individuals grappling with conditions like diabetes, asthma, or hypertension. However, it is important to note that enrolment may involve a waiting period.

Nowadays, there are some medical insurance plans that include existing medical conditions from the date of policy commencement. So, you must be clear that getting health insurance coverage even with pre-existing health disorders is no longer a problem.

Myth 5: Stay-at-home-parents don’t require health insurance.

A medical emergency comes unannounced. It can happen at home. Your parents need insurance even if they stay-at-home. Many ailments can occur with age, and it is best to include your parents in a family floater or a senior citizen’s plan.

Myth 6: I am young. I do not need health insurance.

If you think that health insurance only comes into play once you are old, then that’s not true. It covers a range of benefits which can be used in the event of an accident, emergency hospitalization, or any planned treatments.

Unfortunately, illness or sickness does not check your age and can happen to anyone. By buying an insurance policy, you are safeguarding yourself irrespective of your age.

Myth 7: The premium of the policy should be low for it to be the best.

If it is cheap, it does not mean it is best for you. Anything worthwhile comes at a competitive price. While premium can be a crucial factor impacting your health insurance purchase, it cannot be the only one.

When you are comparing policies, look at a holistic perspective. Check for the features that you may need depending on your age, marital status, family members, medical conditions etc. Consider your future needs as well.

Lastly, don’t buy a health insurance plan because your colleague/friend bought it. No two health plans can be the same, as every person has a different requirement.

Myth 8: Company/Group health coverage is enough. I don’t need more.

Most companies today offer a health insurance policy. However, know that your group health insurance cover will continue until you are working for the company. Once you quit, you do not have any cover. In case of any medical emergency after your resignation, you have to pay your bills from your savings.

Hence it is prudent to also have a personal health insurance policy for yourself and family which you can continue life-long irrespective of job status. A personal policy will also combat rising medical inflation & enjoy peace of mind.

Myth 9: Cashless hospitalization = no cash to be spent

Yes, your understanding is almost right. If you have a cashless hospitalization cover, it will cover major expenses such as ICU charges, room rent, surgeon fees etc. However, your policy may not cover costs for items such as oxygen masks, gloves, bandages etc.

There may be sub-limits in your policy. The prices of these items mentioned above, used during hospitalization will have to be borne by you. You must be aware of the exclusions and limits in your health insurance policy. 

Myth 10: A Pre-existing illnesses will never be covered in Health insurance

A pre-existing illness is any disease or injury that one has before the purchase of a new health insurance policy. It is one for which you have received treatment, consumed medicine or diagnosed before the purchase of your new health insurance plan. The premium amount may vary owing to this condition.

The policy may have a waiting period during which claims due to pre-existing illness will be excluded. Once the waiting period (usually of four years) is over, then the policy will also cover pre-existing diseases. Please disclose all information about any pre-existing condition in your insurance policy.   

Key Takeaways

• Health insurance myths can cloud your understanding of insurance coverage.
• BenefitsCircle is your guide to debunking myths and embracing facts.
• Health insurance is more than medical care; it is a safety net for life's uncertainties.
• Coverage options vary and can be tailored to individual needs and life stages.

We hope we were able to answer the popular myths around Health Insurance. Always read the policy document wordings carefully. Seek guidance if you are unable to understand them. An informed health insurance purchase is your best shield today.