Myths and facts of Health Insurance plans that you must clarify before buying one

The first step in financial planning is often believed to be purchasing a health insurance policy for oneself and one’s family. However, a lot of us ignore it for weak justifications.

- Ashwini Kumar Sharma

Anybody, anywhere, at any moment, can have a medical emergency. Before your investment portfolio is harmed by growing hospital costs, be prepared to pay them. When it comes to insurance against medical demands, don’t take any chances. Here are 5 fallacies that may be preventing you from purchasing a cover and preventing you from making an informed choice. Read on to find out the reality.

I am still young and in perfect health. Why should I buy health insurance?

In fact, the right time to buy a health insurance cover is when you are in the pink of health and leading a fit life. A reason often cited to buy health cover at an early age is its low premium as the health risk is low in younger lives. As one age, the body gets prone to illnesses and hence the morbidity risk gets higher and so does the premium. The health insurance is not only about illnesses and diseases. It’s a universal truth that accidents may occur anytime and at any age. A health cover could come handy in such an event. At times, certain ailments remain unknown to us until their symptoms are visible. As per regulations, such pre-existing ailments are covered after at least 48 months of holding a health policy. Therefore, buying early may help in better claim management.

Although, not a mandate, a policy bought at an early age and renewed for quite some years without any claim, may help in better claim experience as and when it arises. Remember, one doesn’t buy insurance to get sick rather it helps cover the risks if there is a hospitalization.

The best policy is the one that has lowest premium.