Health Insurance Mistakes to Avoid Author:    Posted under: Health InsuranceHealth Insurance questions answered

In these tough financial times, the primary concern for many is to find ways to save money. What’s equally, if not more important is to find sufficient health care coverage. So many people are walking around with inadequate health insurance, and even more are going without it. Some think it’s just not worth paying monthly premiums for since they have been healthy for a long time and have had no use for it. Still others just don’t prioritize it over their daily needs.

But what if a sudden illness strikes them? What if an accident puts their loved one in the hospital? Adequate health insurance coverage will protect them against rising healthcare costs and the financial uncertainty associated with illnesses or accidents. In this scenario, not obtaining health insurance at all would have been the biggest mistake to make.

Whether you’re looking for new health insurance coverage because you’ve finally graduated and have your first job, or due to a job change, or a recent divorce, don’t fall prey to these health insurance mistakes.

Skimping on health insurance coverage. This may save you money now, but when the time comes and you’ll need medical attention, you may find that it will cost you more. Those plans may seem attractive for sure due to the low premiums and deductibles, but a maximum benefit of $100,000 will not go very far and may well leave you paying thousands of dollars in out-of-pocket expenses.

Looking solely at premiums. It’s common for people to comparison shop before purchasing health insurance coverage. But make sure that in doing so, you are aiming to get more value for your money rather than searching for the one policy that charges for less than all the others, without looking at the limitations and exclusions. Lower monthly premiums may mean higher out-of-pocket expenses and limited benefits. You may be better off paying higher premiums and with lower co-payments.

Selecting a policy without understanding the terms. Read not only the benefits you get from the policy, but also the exclusions. Understand which diseases, conditions and treatments that are not covered by the policy. Reading the fine print will give you a better grasp of how your policy can and cannot help you. And remember to do so before signing up for the coverage.

Hiding information from the insurance company. Claims have been rejected based on dishonesty on the policyholder’s part. This could mean anything from withholding valuable information with regards to your medical history or lying about a pre-existing condition altogether.

Taking your insurance agent’s word without question. The truth is honest, compassionate insurance agents do exist. There are those who are truly concerned for your well-being. But the reality is your insurance agent is not your best friend. They are salespersons first and foremost, and they get paid on commission. Some may even offer you an insurance policy that might not give you your required health benefits just so they meet their quota. Additionally, it wouldn’t hurt to check whether the agent is licensed with the Insurance Regulatory and Development Authority or not.


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