It is a huge GAP when it comes to understanding Mediclaim & availing Mediclaim policies. I did a little survey in our office (11 People) and found only 3 to have adequate medical insurance and 4 to be partial/underinsured. The last 4 are still to nudge. Here are 6 Reasons People Don’t Buy Health Insurance.
What stops us from taking a mediclaim policy? How to decide if you should take a mediclaim policy or not? Are there some myths in mediclaim policies? Let’s discuss these in detail.
Certainly, when I spoke to people I found some myths in availing mediclaim policies.
Going forward, in the Covid19 aftermath healthcare expenses are only going to rise as was seen from some astonishing media reports in recent months. Many surveys indicate that premiums will rise to factor in COVID or alike pandemics.
As medical costs soar disproportionately in comparison to income growth, the need for sufficient health insurance becomes urgent and critical to one’s ability to live a high-quality life.
Health Insurance covers costs leading to hospitalization including all tests, doctor consultations, etc. It also reimburses expenses incurred during the admission and treatment Medical expenses that follow the admission period, during recovery, and follow-up.
Reasons People Don’t Buy Health Insurance
Do not need health insurance right now
A lot of individuals that do not invest in health insurance say that they aren’t unwell today, and do not need to purchase health insurance.
An accident or a disease or a pandemic is not going to knock its arrival! It will surprise you and it will not be a pleasant one. Just think that you are procrastinating you are endangering the lives of your family members. If you are a single breadwinner look at the risk in totality.
Covered by my employer’s insurance
Individuals still believe that having corporate health insurance is sufficient to protect themselves from the rising costs of healthcare.
There is always a possibility of a job change or retrenchment. The new employer might not provide the same coverage. There might be a time when you wish to start a business. You will be faced with no mediclaim coverage and the new policy will not include any pre-existing diseases. It is also very tough to get a claim in the first 1-3 years. This will be exposure to a huge risk.
Want to build a healthcare fund instead
Saving up money to come in handy during a healthcare crisis, is viewed as an alternative approach to purchasing health insurance.
There is no problem with this approach. But if you see a possibility of DNA related or family history of any chronic disease you should prefer a mediclaim to the corpus. Also, you need to be ready to let go of a substantial part of liquid assets for medical expenses. Keeping money in liquids generates low returns. Also if there is a small family it can work but for a medium to a large family, a very high corpus needs to be built. So if this is what you can bear you may choose to build a fund.
We always suggest a midway tilted toward Mediclaim. We advise mediclaim as a must with a small corpus (10 to 25 lakh) for medical purposes. This helps in covering the small & petty expenses so that we are not taking claims too often. Also, a corpus provides for things not provided by a normal mediclaim for eg alternative medicines or cosmetic treatments.
The cost is too high
Some consider it unaffordable to invest in health insurance. Yes, if you look at cost everything is costly. But you have to look at the benefits too. Mediclaim is not an investment, it is a risk protection mechanism.
Why do we drive a car on a highway and not a bike? We know a larger vehicle is safer than an open or small vehicle. Cost of these vehicles is not considered. We look at safety. Same way mediclaim is a small expense to cover a large expense in the future.
Products are too complex
Individuals want to purchase but drop out during the research journey, as products are too complex and customizations they do not understand.
Yes, it is a complex product bit one can forts look at “must-have features”. The government also provides a basic feature “no-frills” policy. You can start with those and then can choose to have customization on various features like copay, choice of treatments, the inclusion of various types of rooms, etc.
Have limitations because of medical history
These include willing buyers who cannot purchase as they are considered high-risk individuals as a result of pre-existing medical conditions.
Mediclaim is now available (with terms & conditions) for various patients with already ailments like BP, Sugar & high cholesterols levels.
You can look at the offering and decide.
Hence we see, that myths stop us from buying in mediclaim policy but the benefits of this expense overcome the cost. A well-researched policy can go a long way in providing good medical care for you and your loved ones.
