6 Mistakes to avoid while buying a health insurance policy

It is known to everyone that a health insurance policy helps you to afford the right medical treatment in need. It is advisable that you purchase a policy that provides you with the right coverage when you require it the most. It is equally important to avoid mistakes while purchasing health insurance coverage.

6 Mistakes to avoid while buying health coverage

Here are some common mistakes that you should avoid while purchasing a health insurance policy.

Cutting on health insurance coverage

It is one of the costliest mistakes that people often make while buying health coverage. You should not compromise on the coverage in order to reduce the cost of your policy. You can try out other ways to reduce the premium cost instead of buying inadequate coverage.

Focusing only on premium cost

Many a times, you consider only the premium cost while choosing a health insurance policy. It is always better to choose a comparatively high-premium insurance policy with low co-payment rather than going for a relatively low-premium policy.

Not shopping around properly

It is one of the most common mistakes that people often make while buying a health insurance policy. You may save time by purchasing health coverage that your friends or family members have recommended to you. However, if you shop around properly, you may find an insurance company that provides you with the same coverage at a much lower rate. Therefore, shop around properly before choosing a policy.

Not planning properly

Many of you commit the mistake of not getting a temporary coverage while changing jobs. However, you should plan properly and get a temporary coverage so as to fill the gap while switching jobs. It is also important to take care of pre-existing conditions while changing jobs; because, most of the times, the new plan do not cover the pre-existing conditions.

Not considering alternatives to COBRA

You may sign up for COBRA (Consolidated Omnibus Budget Reconciliation Act) when you lose your job. Under the COBRA, you can continue receiving group health insurance coverage provided by your previous employer. However, there’s a limited period for which you can enjoy the coverage and usually, a new employer sponsored policy will cost you more. So, if you’re healthy, you should look for alternatives to COBRA.

Not receiving full credit of deductible

Often, you don’t get the full credit of what you pay out-of-pocket. Therefore, find out the details about the deductible rules while choosing an insurance provider. Make sure that all your out-of-pocket payments are credited towards your insurance deductible as usually, the insurer reimburses only when you pay the deductible.

However, you may lower down the cost of your health insurance policy by choosing a comparatively high deductible amount.  It is the amount that you need to pay before your insurance company pays for the claim.


Keyphrase: health insurance

Description: Get to know about 6 mistakes that you should avoid while purchasing a health insurance policy.