Shopping for health insurance is certainly not an easy thing to do; this is planning for your last day on earth, something that most people do not fancy or even like to think about. Getting the right life insurance policy plays a vital role in reassuring the well-being of your family, in a case of any disaster. Unfortunately, not everyone knows how to go about it, which results in making a less than perfect choice. Below are just some of the various health insurance mistakes that people buying health insurance are known to make:
Source: Thinkstock/BernardaSv
1) Buying the wrong amount
It is advisable to buy just what you need when it comes to health insurance. This type of insurance is designed to replace an income, and to buy more than you need will not be wise since the company does not issue any amount that it considers to be too high. Another mistake that many shoppers make is choosing a health insurance policy based on price alone. There are many factors that must be considered when evaluating a particular insurance. The lowest price may not adequately cover its intended purpose. On the other hand, the most expensive option available may also not be suitable to the specific needs of the consumer.
2) Believing in any agent
Every agent is different. You may be lured in by an agent’s charm to buy health insurance for the whole family, which you do not need, but remember, the motivation for the agent is the commission they will get from closing the deal. However, this does not mean that all agents lack integrity as you may be lucky to find an honest one who understands and explains the type of policy you need, stays focused when he or she is making the presentation and understands that you need to take your time before making the final decision. Many consumers purchase what they believe to be a health insurance policy, but then later find out that it is indeed a discount plan and is not a suitable replacement for insurance coverage. Many discount plans are marketed nationwide and some utilize very misleading advertisements and sales techniques.
3) Naming wrong beneficiaries
In some countries, minors are not considered as beneficiaries. And without such information, you could cause a lot of confusion when the company wants to compensate them. In other countries, spouses on the health insurance coverage need marriage certificates for the company to pay them. Make sure you understand the laws and regulations behind what your health insurance covers to avoid all this.
4) Assuming all companies are the same
There are health insurance companies that target specific niche markets. Most people do not know this and are likely to fall into the hands of a high-end insurance company, which may have more costly products. Get as much information as you can on the different companies and their clientele to know which company best suits you and your needs. Go for a company that has divergent products as there are higher chances of getting good deals and offers there. Perhaps the most common health insurance mistake that consumers make when buying health insurance is selecting a program that may not be accepted by their family doctors. There is nothing worse than selecting a small insurance company and later finding that none of the local medical facilities or health care providers has even heard of the coverage.
5) Not researching different options
The most expensive mistake that many individuals make is failing to select a health insurance policy that fits their needs without providing unnecessary coverage. Many healthy consumers that do not routinely go to the doctor’s office may be better served by a program that does not cover routine care. Major medical policies will provide coverage in the event of a major emergency or catastrophe but does not pay for prescriptions or office visits. While the co-pays and deductibles may be significantly higher, the premiums are often much less than most people think possible.
Although each of these mistakes can prove to be very costly, failing to shop around may indeed be even worse. Many individuals avoid comparison shopping simply because of time constraints and because the process seems too difficult, but the fact of the matter is that it can be quite painless. There are some insurance comparison websites available that will allow the user to input a small amount of information and immediately receive multiple quotes and options to review.
Feature Image Source: Thinkstock/megaflopp
Posted on February 15, 2023