Why Health Insurance Is a Must-Have in India
With rising medical costs and unexpected health emergencies, health insurance has become more of a necessity than a choice. A single hospitalization can cost ₹50,000 to ₹5 lakh or more — and without a proper health plan, it can drain your savings.
However, many people in India make costly mistakes while purchasing health insurance, leading to claim rejections, inadequate coverage, or hidden exclusions.
Here are the top 5 mistakes you must avoid while buying a health policy in 2025 — and how to choose the right plan for your needs.
Mistake 1: Choosing Health Insurance Based Only on Premium
The Reality:
People often pick the cheapest plan without checking what it actually covers.
Why It’s Risky:
Low premiums usually mean lower coverage, limited network hospitals, or high co-pay clauses. In an emergency, you may realize your “cheap” policy doesn’t help much.
What You Should Do:
Compare benefits, sum insured, room rent limits, and exclusions along with premium.
👉 Compare plans on platforms like:
https://www.policybazaar.com
https://www.coverfox.com
Mistake 2: Ignoring Pre-Existing Disease (PED) Clauses
The Reality:
Most policies have a 2–4 year waiting period for pre-existing illnesses like diabetes or BP.
Why It’s Risky:
If you don’t check this, claims related to pre-existing diseases can be denied.
What You Should Do:
Always read the waiting period, disclose your health conditions honestly, and opt for plans with minimal PED waiting time.
👉 Check PED conditions on:
https://www.nivabupa.com
https://www.reliancenipponlife.com
Mistake 3: Not Checking Room Rent Limit
The Reality:
Room rent cap restricts the hospital room type you can choose. Exceeding this can reduce your entire claim amount.
Why It’s Risky:
Even with a ₹5 lakh cover, a ₹2,000/day room rent cap could make you pay huge out-of-pocket expenses.
What You Should Do:
Choose a policy with no room rent limit or a limit that matches your city’s hospital charges.
👉 You can compare policies with/without room rent limits here:
https://www.turtlemint.com
https://www.bajajallianz.com
Mistake 4: Hiding Medical History or Lifestyle Habits
The Reality:
Some people hide medical conditions or habits (like smoking) to get lower premiums.
Why It’s Risky:
Insurers can reject your claim if you didn’t disclose important information during application.
What You Should Do:
Always declare pre-existing conditions, lifestyle habits, surgeries, or ongoing treatments.
👉 Read more on claim transparency at:
https://www.starhealth.in
Mistake 5: Not Reviewing the Fine Print (Exclusions & Limits)
The Reality:
Many buyers skip reading terms and conditions, especially the list of exclusions and co-pay clauses.
Why It’s Risky:
You may think everything is covered — but many policies don’t cover OPD, dental, maternity, or non-allopathic treatments.
What You Should Do:
Review the brochure carefully. Look for:
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Exclusions list
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Sub-limits on specific treatments
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Co-pay clauses
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Day care procedures
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Pre & post-hospitalization coverage
👉 Download brochures from:
https://www.icicilombard.com
https://www.hdfcergo.com
✅ Bonus Tip: Always Compare & Renew on Time
Use trusted comparison platforms to select the best plan and set reminders to renew your policy on time to avoid a coverage lapse.
Some reliable comparison and purchase platforms are:
🔚 Final Thoughts
Buying health insurance is not just about ticking a box — it’s about securing your family’s financial future during medical emergencies. Avoiding these common mistakes can help you pick the right plan that actually delivers when needed.
Take the time to compare, read, and ask questions before buying. The right decision today can save lakhs tomorrow.
