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Mistake #1: I chose the cheapest plan

Who thinks about comparing and choosing Health Insurance when you're young and healthy? Not me for sure.

Thanks to all the mom-made kadha, my immune system survived COVID-19. Why should I pay extra for something I thought I was barely going to use? So obviously, I picked the first and cheapest plan I found.

Used my first adult money. Low premium. Colourful brochure. I was sold.

I had an accident and landed in a hospital near my flat. Some X-rays, check-ups, and mind-numbing antibiotics later, I found out I had a broken foot. I was confident my shiny new Health Insurance would cover it all.

Plot twist: The hospital wasn’t even part of my insurer’s network! Now, if you love DIYs and crafts, maybe you can get creative with plaster on your foot. But DIY-ing my treatment wasn’t an option.

So, here’s your first of many real-life Health Insurance tips: Cheap doesn’t mean smart.

Sometimes, a slightly higher premium gives you actual coverage.

Mistake #2: Skipped the fine print

You know that fine print no one reads at the end of the document? Yeah, turns out it matters.

Sitting in the hospital’s administration office, I discovered my Health Insurance policy had a waiting period… for everything. I thought I had basic, if not full coverage, but I couldn’t be more wrong.

• Pre-existing diseases? No.
• Basic test? No.
• Breathing too hard? Also no.

Health Insurance Tip 101: Always read the fine print.

Waiting periods, exclusions, co-pay clauses, room rent limits – don’t skip the boring stuff.

Mistake #3: What is co-pay?

What I thought before getting Health Insurance: “My insurance will cover my hospital bills.”

What happened: “Your insurance covers 80%. You pay the rest.”

After searching "what is co-pay" and feeling like a fool, here’s a Health Insurance tip I learnt. So, Health Insurance providers may include co-pay as an optional feature to reduce premiums. Plus, I was getting treated at a non-network hospital, so co-pay was a non-negotiable deal.

Not only did I end up paying for the hospital bills, but I also paid for my poor life decisions. Another classic on the list of Health Insurance mistakes that you should avoid.

Mistake #4: I didn’t compare plans

I spend months comparing laptop models before buying the best one. But Health Insurance?

Nope.

• Did I check claim settlement ratios? No.
• Did I compare hospital networks? Absolutely not.
• Did I ask family and friends for Health Insurance tips? Um… maybe.
• Did I read reviews? Only the top 2, and one was definitely a bot.

Now, I thought I ended up with a good plan. The insurer is a reputed provider in the market, the premium was decent, and my friends bought similar policies. Plus, what’s the worst that could happen to someone as young as me?

Here’s what can happen: Life.

Health Insurance Tips 101: If a policy sounds too good to be true, it probably is.

TL;DR (too long, didn’t read)

I picked the cheapest Health Insurance plan, skipped the fine print, and paid most of my hospital bills. Don’t be like me.

Now I know better, so I'm trying to save you from crying in the billing queue at your insurer’s office, holding a file full of rejected claims. Here are my tried-and-tested Health Insurance tips:

Health Insurance isn’t just a box to check off. Read that policy brochure like your life and savings depend on it – because it does.

And if you see an ad that says, “Health Insurance for just ₹170/month”, just don’t.

Read the fine print, because that’s what actually protects you.

You’ve got this! Also, if your plan covers therapy, use it, because adulting is hard.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

By Axis Bank Learning Hub Team