5 Common Mistakes to Prevent While Buying Health Insurance

As we grow through life, we begin to understand the importance of the quote ‘health is wealth’. In the event we face any eventualities that affect our physical well-being, we may not be able to achieve all that we wanted to. However, we can ensure we are protected from the unprecedented dangers in life by following a healthy lifestyle and getting health insurance.

Health insurance plans are insurance products that offer you financial protection to get the medical assistance you need for dealing with injuries, illnesses, etc. A health insurance plan is an effective way to deal with the rising medical expenses and getting the proper medical assistance you need during medical emergencies. The average cost of health insurance in India is approximately  ₹4000-7000 annually for an individual. Insurance companies have set the cost at an affordable price to ensure individuals get to protect themselves without any financial stress.

While opting for a health insurance plan can be quite beneficial, you must purchase a suitable plan. This is because the coverage you get will entirely depend on the plan you purchase. Therefore, if you’re planning to purchase health insurance, you must avoid a few health insurance mistakes while purchasing the plan.

Common Health Insurance Mistakes You Should Avoid While Purchasing The Plan

  1. Getting insufficient coverage: The coverage of your health insurance plan will directly impact the premium amount for the plan. However, most individuals make the mistake of getting insufficient coverage for getting an affordable premium amount. Therefore, it is important that you read about the coverage available for you and identify your requirements before purchasing the plan. Getting an extremely expensive health insurance plan may not be an affordable option. However, you must ensure you do not choose your policy coverage depending on the premium amount.
  2. Not including add-ons: Add-ons are additions to the insurance policy that help you increase your coverage through the plan. With an add-on in your health insurance, you will get additional coverage for a specific situation based on your chosen add-on. However, including add-ons to your insurance plan can lead to a hike in the premium amount. Therefore, most individuals usually refrain from including add-ons and stick to the basic coverage to save on the premium amount. But, doing so can affect you in the future, as you may not get the correct amount of coverage for certain situations. Insurers provide a premium calculator on their official website to help customers get an insight on their health insurance quotes. Using the premium calculator can help you understand how different add-on additions can impact your premium amount.
  3. Not reading the policy document: When you’re purchasing a health insurance policy, you get to read the policy document. Usually, individuals skip out on this part of the process and finish the transaction without wondering about the policy document. When you don’t read your insurance document carefully, you are missing out on understanding the exclusions and inclusions of your health insurance policy. Therefore, it can be quite disadvantageous to you in the long run.
  4. Hiding medical history: If you have a medical history, you must disclose it entirely to your insurance provider. It is important to provide your insurance company with the correct information, as it will help you get the correct medical care if something happens to you. The insurance company can also reject your claim if you conceal your medical history from them. The insurance company also needs to know about the extent of coverage you may need under the health insurance plan.
  5. Not comparing medical plans: If you already have an insurance product with an insurance company, you may feel getting the health insurance plan would be a suitable option for you. However, it is always important to ensure the insurance plan you choose matches your requirement. It is advised that if you’re planning to purchase health insurance, you must always conduct good research and compare health insurance plans available for you.

Therefore, avoiding these mistakes during your health insurance purchase can help you immensely. If the process of choosing a suitable health insurance plan seems a bit overwhelming to you, you can smoothen the process by asking these things your insurer:

  • ‘Which variant of health insurance is the plan?’

Health insurance plans come in different types. For instance, health insurance with cancer cover is designed to protect you if you’re diagnosed with cancer. You must learn about the different variants available for you and opt for the one that matches your requirement.

  • ‘What is the claim process?’

Learning about the claim process before purchasing the plan can be quite beneficial for you during emergencies. When you have a clear idea about the claim process, you will file a claim and submit the necessary documents smoothly.

  • ‘Which are the hospitals included in the network hospitals?’

It is always helpful to learn about the network hospitals under your insurance company. Learning about the network hospitals will help you get the medical assistance you need without worrying about the bills.


Purchasing health insurance is an effective way to get appropriate medical attention and protect yourself. However, to ensure you get the most suitable insurance plan, you must refrain from making a few mistakes. You must also allocate a decent amount of time for research and ask your insurer the right questions for getting a decent health insurance plan.

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