1. Depending only on the cover of the employer:
It is common mistake that people do not take health insurance policies because they are covered in the employer's group health plan. It will be beneficial for you to get an independent medical cover, especially a family floater plan, for two reasons. First, the company's group policy will cater to your family's needs, but not all members are covered in it. Second, The Company’s health cover is discontinued with leaving the job. It may be possible that the new employer does not offer you a health plan and you have no cover until you have a new policy. While leaving the job, there is an option to port the cover of the company, but it is not necessary that you always get it. [Buy book on Amazon: Understanding Insurance of Health]
2. Not reading the Policy Terms and Conditions:
It is often so that most people do not read the policy terms and conditions completely. Occasionally it has to suffer a lot. Generally there are important information like room rent limit, waiting period for the coverage of early and chronic diseases, before and after the recruitment to the hospital expenses and other exclusions. Not reading this may shock you during the settlement. For example, the room rent in your plan is less than the actual cost. If this happens, you have to pay the balance with your pocket. Similarly, after the purchase of the plan, there is a time period in which you cannot claim. To avoid such shocks, you should read the terms and conditions closely. [Buy book on Amazon: Understanding General Insurance]
3. Considering only Premium while taking the policy:
When buying a health plan, many factors need to be looked at. These include Family Medical Requirements. Therefore, it is important to take care of the size of the cover, limitations and exclusions, claims settlement record of the insurer, and the coverage of existing diseases, the waiting period, hospital network and premiums. If you choose a plan by looking at just the premium then you may be able to get a cheap cover, but it does not meet your needs and your purpose of buying it is not complete. You need to look at premiums adding to your other needs, which include the track record and performance of the insurance company. [Buy book on Amazon: India Insurance Guide]
4. Ignoring the Habitat Area:
If you live in Metro or Tier 1 City then you will need to take a health cover more than of small, tier 2 and 3 cities. This is because treatment costs are high in a large hospital and there is also a lot of medical facility. Most insurance companies charge the policy premium according to the zones. This means that if you live in a big city then you will have to pay a higher premium, whereas in small cities, medical costs will be spent. Although you should tie the knot, if you shift to the smallest city or go to the big city, then reduce or increase your health insurance cover accordingly. [Buy book on Amazon: Health Insurance for Rich and Poor in India]
5. Not telling medical history:
Many people deliberately do not tell about their significant medical condition or pre-existing diseases by view that they have to pay more premiums or the company will reject their proposals. But they cannot understand that their claim can be rejected later, if the company finds that the policy holder did not provide the correct medical history while taking cover. Most insurance companies have the waiting period for pre-existing diseases. If you do not show honesty, you can lose the premium paid and may be your claim will be rejected when you need it. [Buy book on Amazon: Fundamentals of Life Insurance: Theories and Applications]