5 Common mistakes when buying health insurance

First-time buyers are prone to committing costly mistakes when they take out health insurance. Know and avoid these.

10:58 06 January 2013

Buying health insurance for the first time can be tricky and it’s easy for you to commit costly mistake. To avoid this from happening, keep the 5 common mistakes in mind before you hand over your hard earned money to any insurance company.

1.    Making price the sole determining factor. A lot of people who are taking insurance are only concern with one thing: Price. As a result, they usually get the cheapest policy in order to save. Before you do this, keep in mind that just like any insurance policy out there, the coverage is determined by the price you paid. While cheaper policies are pocket-friendly at first, you may end up paying more should you get ill or get hospitalised as they will only cover a portion of your bill.

2.    Making decisions without asking for professional advice. Health insurance is a tricky business and there is no way that you’ll learn its ins and outs in days. To avoid getting ripped off and to make sure that you’re getting the best value and price, ask for professional advice. Legitimate brokers will know all the answers to your questions and they might even help you get great discounts from insurance companies.

3.    Doing business with unregulated companies. It’s always a good thing to work with insurance companies that are FSA registered. These insurance brokers have to abide by strict rules and regulations so you can make sure that you’ll get accurate advice from a trusted source.

4.    Not understanding your policy. Before you sign and hand over your hard earned money, ensure that you understand what your policy covers. How much are they going to pay you should you get hospitalised? Is there a limit?

5.    Not telling insurance brokers ahead of time about pre-existing conditions. Most people know that insurance companies do not usually cover pre-existing conditions. This is the reason why some people would resort to white lies when they’re filling up forms and doing interviews. Do not do this. If you have pre-existing condition and your insurer discovered this, they are most unlikely to cover your expenses. It would be just waste of your money and time.