17 Most Misunderstood Facts About Health Insurance

A health insurance plan is very important for all individuals. However, there are certain misconceptions and it is important to understand the facts about health insurance before you buy.

The Cheapest Policy Is the Best

While affordable health insurance is important for all, it is not wise to get the cheapest policy available. These policies often exclude certain important features. A standard health insurance policy, even at an affordable rate, should include several benefits and updated features. At Vital, we help reduce premiums for customers by up to 70% by offering small deductibles without compromising on any aspect of their health coverage.

Health Insurance Is only Necessary for Older People

One of the common thoughts about health insurance is that only the middle-aged or elderly usually need it, as they are more prone to illnesses. However, if you buy health insurance when you are young, you will get better benefits. Therefore, it is important to buy health insurance when you are young and healthy as then there is no waiting period related to pre-existing disease coverage. If you renew the policy at regular intervals from a young age, then you can claim more benefits when you actually need the insurance.

Health Insurance Plans Allow Cashless Facilities All the Time

Cashless facilities are only available at network hospitals. You can claim the benefits even at non-network hospitals, but you will not be able to avail yourself of the cashless facility. You will instead have to pay the bills yourself and get them reimbursed from the insurance company. The good news is that health insurance companies now have really expanded their network of hospitals and most major hospitals around the country offer cashless facilities.

All Benefits Are Lost if The Policy Is Not Renewed on Time

Buyers should understand the facts about health insurance that the benefits of a health insurance plan are not lost immediately if the policy is not renewed on the so-called due date. You will get around 15-30 days after the plan has expired to renew it and claim the benefits – this is called the grace period. If you are able to renew it within this grace period, the coverage continues and all the benefits are available.

All Policy Benefits Are Available from The First Day

There is a waiting period for health insurance policies, which is generally around 30 days. For pre-existing disease coverage, the waiting period can be up to 4 years. During this time, the health insurance can be claimed for any other diseases or hospitalization, but not your pre-existing condition or any hospitalization related to it. However, the health insurance policy that covers pre-existing diseases can have a shorter waiting period of about 1 or 2 years. 

There are also waiting periods applicable on the treatment of certain diseases as well as certain elective surgeries. Make sure you have read through your policy document carefully for smaller details like this.

There Is No Waiting Period if You Do Not Have Any Pre-Existing Conditions

The facts about health insurance say even if you do not have any pre-existing medical conditions, there will be a waiting period. Usually, the insurance policy cannot be claimed for about 30 days after you buy it.

Not All Pre-Existing Diseases Need to Be Disclosed

It is important to completely understand the facts about health insurance while purchasing health insurance. You should not hide any medical conditions, especially pre-existing ones. This can affect the conditions of the policy and if the fact that you have been dishonest becomes known, all claims will be rejected.

Group Health Insurance Is a Good Option

Group health insurance is only a good option if the plan includes major benefits or if you have another personal plan to top it up. The facts about health insurance reveal most of the time, group health insurance is not enough for all family members – you will need separately get a family floater health plan If there are many members in your family, or if several members have illnesses that require frequent hospitalization, it is better to go for separate health insurance plans.

Health Insurance Documents Can Be Thrown Away After the Policy Expires

The real facts about health insurance are such that if you want to get claims approved, a third-party administrator or TPA will have to check the previous policies. It is easier to settle claims if the TPA can determine what the previous coverage was and how long it lasted. Therefore, you should keep health insurance documents for at least 3 years after the date of expiry.

Health Insurance Plans Are only Available for Non-Smokers

One of the facts about health insurance is that many people who smoke do not buy health insurance plans thinking that these plans cannot be claimed by them. You can get affordable health insurance even if you are a smoker. You will have to undergo some health check-ups and you might need to pay a little more than what is usually required. But it all comes down to what your health risks are and this depends on a lot of factors – current health status, any hereditary conditions in the family, lifestyle habits, and so on.

Health Insurance Can only Be Claimed After 24 Hours of Hospitalization

The facts about health insurance are believed to be true by many. But there are surgical procedures that need less than a day of hospitalization and these daycare procedures are nowadays covered by most insurance policies.

Health Insurance Does Not Cover Pregnancy

Some years ago, several health insurance plans could not be claimed for pregnancy. But recently, top health insurance plans have started to cover pregnancy or maternity-related costs. However, these health insurance plans for pregnancy or any related medical conditions have a waiting period.

All Health Insurance Policies Cover the Room Rent in Hospitals

This health insurance fact is not entirely true. Certain policies do cover the actual room rent. However, also other health insurance policies do not pay for the room rent. There are also several health insurance plans that cover the room rent up to a certain amount.

Health Insurance Plans Bought Online Are Not Secure

Buying health insurance plans online is quite common and has gained popularity in recent years. If you buy the plan from a reputed site, then you do not need to worry about it not being safe. Top health insurance companies are finding new ways to go digital and reach the customers directly, solving two problems – the still-present hesitance on physical contact and the utter convenience of the process.

Health Insurance Plans Cover Hospital Bills Completely

Many health insurance plans do not cover all costs. The plan may not pay for thermometers, face masks, gloves, and other such items. You will then have to pay for these items and the insurance plan will cover surgery or treatment costs.

Health Insurance Policies Can only Be Claimed if Hospitalized

There are certain surgeries and treatments that do not require hospitalization. A good health insurance plan will cover these treatments. They can be claimed for a cataract operation, piles operation or kidney stones removal, and other such treatments that do not require hospitalization. These procedures are called daycare procedures.

Best Health Insurance Plans Include a Number of Network Hospitals and Daycare Facilities

A good health insurance plan needs to provide proper benefits that will work for you. The network hospitals and daycare facilities covered by the plan will usually change after a certain period. Top health insurance companies will keep adding network hospitals and daycare facilities. Therefore, you should choose one that provides adequate coverage.

Before buying health insurance plans, check the details and conditions properly. You should only buy a policy if it is good enough for you and covers all your needs.