Don’t wait for the ‘right time’ to buy health insurance

Shruti Sharma, 36, (name changed to protect identity) is married with two kids and was diagnosed diabetic last year. For the past six months she has been in search of a health product as her friends are pushing her to buy one. This is a common mistake many of us do; not buying health insurance unless we find the immediate need of it.

But, buying or waiting for the perfect insurance product is like getting into a marriage, where we can wait till eternity and yet end up not getting married to the perfect person. Likewise, when it comes to buying a health insurance product most of us are like Shruti because we think, ‘Now I am healthy, I will buy one when I need it’. But, one should keep in mind that the basic idea behind getting insured is to protect financial well being in the case of an unexpected loss.

So, don’t wait for the right time to buy health insurance because, according to Mahavir Chopra, head - e-business and personal lines at Medimanage, a dedicated health insurance broking firm, “If insurance companies were to provide everything that a customer required, the cost of health insurance products would be way higher and unaffordable. People have careless attitude towards medical insurance, they wait to fall ill before actually bothering about getting insurance.

Things to keep in mind

• It is important that a person should emphasise and focus on getting the major burden covered instead of trying to get many more items included. Try getting an insurance that will cover the larger expenses instead of the smaller ones.
• In health insurance policies it is more important to understand the exclusions and the inclusions in a health insurance product, which are not always clearly mentioned or described in the policy.

According to Dr Amarnath Ananthanarayanan, managing director and CEO, Bharti Axa General Insurance, “The important exclusions to watch out for include (a) those which are completely excluded and generally not covered even upon payment of additional premium like diseases/injuries caused by war, nuclear weapons, radioactivity, etc; (b) those conditions which are covered after a certain time (pre-existing diseases); (c) those which are generally excluded but can be covered from day 1 upon payment of additional premium like outpatient treatment and dental treatment.”

• It is desirable to look for the basics and cut out the frills. Nowadays, many insurance firms are offering free vouchers to lure customers. But, a customer should study the product well because there are chances the insurance company may reduce the cover or hike the premium.
• It is always recommended that health insurance should be opted for at a young age and it should be ensured that policies are renewed without any break. This will result in the insured person getting the best deal in terms of premiums as well as policy coverage
• Even if your employer has provided you with health insurance, you can’t afford to rely on the same. Hence, make sure you buy one individually because if you change your organisation, you need a back up. “In case you decide to change job, you are likely to be without an insurance cover till the time your new employer’s health insurance cover becomes effective. Also you will lose any accrued health insurance benefits like waiting periods, etc from your previous insurance cover,” says Dr Damien Marmion, CEO, Max Bupa Health Insurance.
• The younger you are more your choice. “Usually at a younger age, a person has less ailments or almost no pre-existing diseases that keep the premiums low and affordable. In addition if the insured makes no claims in a particular year, a 5% no claim bonus subject to a maximum of 50% of his total sum assured gets credited to him,” says Raunak Roongta, an independent financial planer in Mumbai.
• One should know the company from which he is buying the insurance because it helps in keeping a track record of that company in terms of customer service either within India or globally and also the claims paid.