A health insurance plan is one of the most important elements of a robust financial plan. Apart from being a sound barrier to protect you from financial ruin in medical emergencies, it is also a great tax-saving device. Excited by the prospect of receiving these benefits, people often rush to pick the first policy that comes before them. For such an important decision, it is essential that you avoid mistakes and make an informed choice on where you want to put your money in. You can also opt for health insurance premium calculators to find out the coverage you’d require. To help you with that decision, we’ve made a list of 3 rookie mistakes you should take care to avoid:
- Not calculating many people overestimate their financial situation and end up getting stuck in a bind when their premiums start piling up. To avoid a financial strain on your budget, always plan ahead and make sure your premium payments never exceed more than 30% of your income. To help you plan your budget, there are many health insurance premium calculators online that give you a rough estimate of how much you’ll be expected to pay, as per your scheme. These tools are extremely handy, convenient and should be used by every prospective buyer.
- Starting out too late: Young age is no guarantee for good health. And the early you start with health insurance, the more you can benefit. Starting early, you can cover for any illness that may come your way without emptying your small budget. The likelihood of any pre-existing diseases is also low, which means cheaper cover. You pay significantly less in premiums if you start at age 25, than the amount you pay at age 45. In some cases, starting late may even get your application denied.
- Not reading the literature: How often do you dismiss the fine print of any product that you buy? While buying health insurance, it is very important to read the fine print that comes with any scheme. Look for clauses that mention co-payments where you have to share some costs with the insurer. Check the amount of money granted for hospital rent. Have a look at the list of nearby hospitals included in cashless hospitalization facility. Read all policy documents carefully and clear out all queries with your agent before signing anything.