Health Insurance: In today’s world, health insurance isn’t just an option; it’s the strongest shield for your family’s financial security. Given rising hospital costs and the exorbitant treatment costs for serious illnesses, not having the right policy can be detrimental to your bank balance.
Often, people purchase a policy in a hurry, only to discover at the time of a claim that a small negligence has resulted in a health insurance claim worth lakhs being rejected. With the new regulations of January 2026 and the latest guidelines from the insurance regulator, it’s crucial to understand the basic considerations to keep in mind when purchasing a policy.
Hidden Medical History
The most common and fatal mistake when purchasing health insurance is concealing information about past illnesses or existing health problems. Many people are under the misconception that if they don’t disclose issues like past surgeries, high blood pressure, or diabetes to the company, their insurance premiums will be significantly lower.
But you need to be careful here. Insurance companies conduct a thorough technical examination of your past medical records before settling a claim. If, during the investigation, they discover that you concealed any information when purchasing the policy, not only will your claim be immediately rejected, but your policy could also be canceled.
Therefore, always be completely honest about your medical history. While providing accurate information may increase your premium slightly, the company will be obligated to cover your medical expenses without any hassle if needed.
Signing the Policy Without Reading the Terms
Most people buy policies after being lured by an insurance agent’s sweet words or attractive advertisements, but don’t bother to read the actual terms and conditions. This mistake often leads to a significant financial blow after hospitalization. For example, many policies have a waiting period, which means that coverage for certain illnesses will only begin after 2 to 4 years.
You should also be aware of exclusions, i.e., things the company won’t cover, such as cosmetic surgery or certain treatments. Also, pay attention to clauses like “co-payment,” where you have to pay a portion of the bill out of your own pocket. Understanding these technical aspects in advance saves you both time and hard-earned money. To facilitate the claim process, it’s important to carefully read every page of the policy.
Chasing the Lowest Premium
The third biggest mistake is simply looking for the “cheapest plan.” Low-premium policies often come with very little coverage (Low Sum Insured). In today’s inflationary times, if you only take out a cover of 2 or 3 lakh rupees, that amount will prove to be a mere drop in the bucket for a major operation or long-term treatment.
When choosing a policy, always consider the adequacy of the coverage and its tenure. Ensure that the amount you pay is sufficient for the sum insured, which is sufficient to cover today’s expensive treatments. Also, check out powerful features like the “Restoration Benefit,” which replenishes your limit if you relapse within the same year. Choosing the right premium and adequate coverage makes your claim process easy and stress-free.
Tips to simplify the claim process
To fully benefit from health insurance, always have a set of all medical reports, discharge summaries, and original bills ready. Cashless claims are the best option these days, so before purchasing a policy, be sure to check whether the company’s network includes reputable hospitals in your city. In this digital age, you can also report claims instantly through mobile apps, significantly reducing the burden of paperwork.