Overview:

Health insurance uptake is a bit slow in our country. This could be due to the many myths and misconceptions associated with it. This blog busts some common myths so that people can make an informed choice.

Health insurance forms a major part of the healthcare sector. It also forms a large sector of the Indian economy, both in terms of employment as well as profit generation. Yet, India’s approach towards health insurance is indifferent to say the least. Unlike in other countries like France, Switzerland, Netherlands, etc. our government has not made health insurance mandatory for people. As a result, a large part of the population ends up spending out of its pocket for healthcare expenditures.

India is the most populated country in the world. Public health plays a huge role in the growth of our country. Despite this, health insurance coverage is woefully low. There are many reasons for this:

• People do not view health insurance as a necessity. Until something unfortunate strikes, health insurance coverage is put on the backburner.
• Awareness on the various health insurance options available is also low. Inspite of the pandemic highlighting the need for health insurance, people still do not give it the importance it deserves.
• There are also various myths and misconceptions regarding health insurance which need to be addressed to make people avail insurance.

Busting Myths 

Myth 1: There is no need for young people to invest in a health insurance policy.

• This is a widely prevalent myth.
• Youngsters may be healthier than older adults but they too are not immune to mishaps like accidents.
• Moreover, lifestyle diseases are on the rise among our younger population. We should not make the mistake of underplaying the need for health insurance among them.
• Further, premiums are a lot less expensive for youngsters and that is something they should take advantage of.

Myth 2: Coverage begins as soon as you buy the plan.

• This is not true in all scenarios.
• Some plans have a waiting period and only after that period passes will coverage begin.
• So, it is necessary to read the plan in detail to know how soon we can start availing health insurance coverage.

Myth 3: You should go for the cheapest plan.

• Nothing could be more untrue.
• The price of the plan should not be the only determinant of purchase.
• While a plan should be affordable, what is more important are the features of the plan.
• You need to choose a plan depending on your health needs.

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Myth 4: If your employer provides group insurance, that is sufficient.

• This is a common myth that employees need to remedy.
• A group insurance is of course good, but it usually provides only limited coverage.
• Top up with other plans is often needed.

Myth 5: Pregnancy is not covered under health insurance.

• This is a massive myth that needs to be busted.
• This unfortunate myth often prevents women from availing maternity care from good hospitals.
• Family floater plans often cover pregnancy.
• Other than that, there are also special maternity health insurance plans.
• However, the waiting period is something one must look into while buying a plan that needs to cover pregnancy.

Myth 6: Hospitalization is necessary to make a claim.

• This again varies with plans.
• Some plans cover day care procedures, diagnostic tests, etc.
• Hospital admission is not always a necessity to make a claim.

Myth 7: Online health insurance plans cannot be trusted.

• As long as you get a health insurance plan from an insurer registered with the IRDAI, it is quite safe.
• Also, make sure the insurer offers secure payment gateways and do not share your personal information like banking details, etc. with anyone.
• Read the policy carefully to be sure of what is covered.
• Also read people’s reviews of insurers as this will help you understand the various pros and cons.

Myth 8: Pre-existing illnesses are not covered.

• A number of pre-existing illnesses are covered but they usually have a waiting period before coverage begins.
• So once again, this has to be looked into while choosing the plan.

Myth 9: It is not possible to customize health insurance plans.

• Customization is possible with the help of riders.
• However, you have to pay for the riders that are nothing but additions to the health insurance plan coverage.

Myth 10: People who smoke and/or drink cannot buy a health insurance policy.

• This is not true.
• Even people who smoke and/or drink can get a policy.
• However, they will have to undergo a comprehensive check-up before they can buy a policy.
• Also, because of their increased health risks, the premium may be more for them.

Myth 11: It is not necessary to disclose pre-existing illnesses.

• Non-disclosure of a pre-existing illness is a breach of trust.
• The company when it finds out can reject the claim.
• It may even terminate the policy.
• Further, future health insurance policies may be harder to get and if you do manage one, the premium might be further increased.

Myth 12: Network hospitals are limited to metropolitan cities.

• Network hospitals are those where you can avail cashless treatment subject to the policy’s terms and conditions.
• Health insurance companies usually have network hospitals in smaller cities and towns as well.
• But before you get the policy, do go through the list of hospitals which are covered.
• Non-network hospitals too may get reimbursement for covered services.

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Myth 13: Health insurance covers all costs in the event of a hospitalization.

• Having health insurance does not mean everything is covered.
• There may be conditions that require you to pay out of your pocket.
• Some policies may have co-payments where the policy holder pays a part of the expense and the remaining is covered by insurance.
• There is a ceiling on room rent too exceeding which the policy holder has to pay the difference.
• It is important to read the policy thoroughly to understand the terms of the insurance.

Myth 14: Health insurance policies in India are very expensive.

• Not true - health insurance policies are available in different premium ranges.
• Choose one that balances what you need with your affordability.
• The premium can also be paid in installments according to IRDAI guidelines.
• Further, tax deductions can be availed on insurance premiums.

Myth 15: Alternative treatments are not covered.

• Alternative treatments are covered under certain plans.
• If you are looking for this coverage, you can ask the company which of their plans cover what you need.

The need for health insurance is non-negotiable. If you haven’t got one yet, do consider investing in one. It will prove invaluable when illness strikes.

Frequently Asked Questions

1. What is health insurance?

Health insurance helps cover medical expenses, including hospitalization, surgeries, and prescription costs. It ensures you are financially protected in case of illness or injury.

2. Why do I need health insurance?

Health insurance protects you from unexpected high medical costs and ensures you have access to healthcare when needed without draining your savings.

3. Can I include my family in my health insurance?

Yes, many health insurance plans offer family floater options, which allow you to cover multiple family members under a single policy.

4. Does health insurance cover pre-existing conditions?

Health insurance often covers pre-existing conditions after a waiting period, but it’s essential to check the policy terms for specific details.

5. What’s the waiting period for health insurance?

The waiting period is the time you must wait before certain benefits, like coverage for pre-existing conditions, maternity, or specific treatments, become available under your plan.

6. How do I file a health insurance claim?

To file a claim, you’ll need to submit documents like medical bills and receipts. You can claim either via a cashless process (if you’re in a network hospital) or through reimbursement for out-of-network expenses.

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