5 Health Insurance Myths Busted

by Jessica Kappor Project Manager

It is important to get a proper health insurance cover, as a medical emergency can result in substantial expenses that can eat into your savings. Such a situation can be easily avoided with insurance, but there are certain myths associated with health policies. These myths deter many individuals from purchasing proper medical insurance covers.

Here are some of the most common myths associated with health insurance:

1. Policy benefits are lost if the policy is not renewed on due date

You need to keep renewing the policy on time. This ensures that there is no period in which you are not covered. There might be chance that due to some reasons you forget to renew the policy on time. In such cases, the insurance provider generally gives a grace period of 15 or 30 days from the expiry date of the policy, within which you can renew the policy without a loss in any benefit accrued till date. This will allow you to remain insured without break, meaning that you will be treated as “continuously covered” in terms of continuity benefits, such as waiting periods and coverage of pre-existing diseases.

2. Benefits from health plans start from day one

Many people are unaware that almost all health policies provide no coverage for any disease during the first 30 days from the beginning of the policy. Only hospitalization due to an accident is covered during this period.

3. The entire cost will get reimbursed

While Mediclaim policies are supposed to reimburse the full amount of expenses incurred during hospitalization, in reality, the claim is only partially paid by the insurer, depending on the sum insured and the terms and conditions of the policy. There can be a number of reasons for this, again depending on the policy. One of the main reasons could be the sub-limits applicable under the policy. For example, the reimbursement for the rent of the hospital room may be capped at 1 per cent of the sum insured. In such cases, any excess amount will have to be paid by the policyholder.

4. 24 hours of hospitalization is necessary to file a claim

Generally, hospitalization for 24 hours is an important requirement for filing a claim. However, technological advancement in the medical field has led to certain surgeries and procedures requiring hospitalization for periods shorter than 24 hours. Many policies now cover a wide range of such procedures, known as day care procedures. Certain insurance providers have also started offering claims on out-patient expenses, but with certain restrictions.

5. All pre-existing ailments are covered after 48 months, even if not disclosed

All health insurance plans will cover pre-existing diseases and ailment after a period of 48 months (time period may vary with different policies). There are also some plans that cover pre-existing ailments even after 36 months. But the coverage of pre-existing diseases is will depend on you making all medical disclosures at the time of purchasing the policy.

Remember, a health insurance cover for yourself and your family will help ward of financial emergencies caused by medical reasons. With the rising costs of medical treatment, health insurance has become more than a necessity, and if you haven’t purchased a health insurance yet, do not wait get one soon.